Chicago, USA – Global fast food chain McDonald’s has officially announced that they are now exiting Russia, 30 years since they first opened their Russian branch in 1990. As part of that exit, McDonald’s is selling its Russian business.
The fast food chain had previously announced its suspension of operations in Russia on 8 March, as well as an open letter posted by their CEO Chris Kempczinski on the same day regarding the suspension.
Speaking on the formal exit of the company, Kempczinski said, “We have a long history of establishing deep, local roots wherever the Arches shine. We’re exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to McDonald’s make today’s announcement extremely difficult.”
He added, “However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there.”
According to the company, the ongoing humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald’s to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald’s values.
It is also expecting that the company will lose around US$1.2b to US$1.4b to write off its net investment in the market.
McDonald’s is one of the hundreds of companies that have exited Russia amidst the ongoing Russian invasion of Ukraine; which includes advertising and marketing companies such as Publicis Groupe and IPG.
