Home News McDonald’s to sell its Russian business, try to keep workers

McDonald’s to sell its Russian business, try to keep workers

by admin

McDonald’s said Monday that it has started the process of selling its Russian business, which includes 850 restaurants that employ 62,000 people, making it the latest major Western corporation to exit Russia since it invaded Ukraine in February.

The fast food giant pointed to the humanitarian crisis caused by the war, saying holding on to its business in Russia “is no longer tenable, nor is it consistent with McDonald’s values.”

The Chicago-based company announced in early March that it was temporarily closing its stores in Russia but would continue to pay employees. On Monday, it said it would seek to have a Russian buyer hire those workers and pay them until the sale closes. It did not identify a prospective buyer.

CEO Chris Kempczinski said the “dedication and loyalty to McDonald’s” of employees and hundreds of Russian suppliers made it a difficult decision to leave.

“However, we have a commitment to our global community and must remain steadfast in our values,” Kempczinski said in a statement, “and our commitment to our values means that we can no longer keep the arches shining there.”

As it tries to sell its restaurants, McDonald’s said it plans to start removing golden arches and other symbols and signs with the company’s name. It said it will keep its trademarks in Russia.

The first McDonald’s in Russia opened in the middle of Moscow more than three decades ago, shortly after the fall of the Berlin Wall. It was a powerful symbol of the easing of Cold War tensions between the United States and Soviet Union.

McDonald’s was the first American fast food restaurant to open in the Soviet Union, which would collapse in 1991. McDonald’s decision to leave comes as other American food and beverage giants including Coca-Cola, Pepsi and Starbucks have paused or closed operations in Russia in the face of Western sanctions.

Corporations from British energy giants Shell and BP to French carmaker Renault have pulled out of Russia, taking a hit to their bottom lines as they seek to sell their holdings there. Other companies have stayed at least partially, with some facing blowback.

McDonald’s said it expects to record a charge against earnings of between $1.2 billion and $1.4 billion over leaving Russia.

Its restaurants in Ukraine are closed, but the company said it is continuing to pay full salaries for its employees there.

McDonald’s has more than 39,000 locations across more than 100 countries. Most are owned by franchisees — only about 5% are owned and operated by the company.

McDonald’s said exiting Russia will not change its forecast of adding a net 1,300 restaurants this year, which will contribute about 1.5% to companywide sales growth.

Last month, McDonald’s reported that it earned $1.1 billion in the first quarter, down from more than $1.5 billion a year earlier. Revenue was nearly $5.7 billion.

Source : Google News

Related Articles

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

NEWS7.ASIA :McDonald’s to sell its Russian business, try to keep workers
https://www.chaussures-enligne.be/   https://lingeries-sexy.com   https://mgfetes.fr   https://salt-t.net   https://www.minipc.biz/  
1 AVIONS STYROL 20 CM A MONTER JOUET *  Theatre De Marionnettes En Bois [Jouet] *  Trolley et sac Maquillage 2 en 1 Make Up Professionnelle pour esthéticienne et visagista *  Merrell Waterpro Maipo, Baskets Basses Homme *  ZOEON Femme Maillot de Bain 1 Pièce Amincissant Rembourré Monokini Dos Nu *  * 3D sph?re de puzzle 60 pi?ces Jupiter Yi-LE JUPITER (diam?tre d’environ 7,6 cm) (japan import) *  Prostate cancer: understanding patients’ treatment options – Nursing Standard *  https://dedalusweb.net   https://www.afric.info   https://www.yonne-communes.org   https://www.comptoirdubagage.biz/   https://www.chaussureprofile.com   https://www.poulailler-pas-cher.eu   https://www.jeepeg.com   https://pushkarvisit.com   McDonald’s to sell its Russian business, try to keep workers : news7

news7.asia McDonald’s to sell its Russian business, try to keep workers