(MENAFN- BreezyScroll)
McDonald's, one of the largest fast-food chains in the world is exiting Russia, after over 30 years of business.
The iconic Pushkin Square store is also closing
McDonald's corporation is selling its restaurants in Russia , making it one of the biggest global firms to exit Russia after it invaded Ukraine. The firm is expecting to record a $1.2 to $1.4 billion non-cash charge after the sale. In 2021, it generated about nine percent of its revenue from Ukraine and Russia. In March, the burger chain decided to close its 847 restaurants in Russia.
The iconic Pushkin Square store in central Moscow is also closing. Opened in 1990, the store was a symbol of the flourishing American capitalism. Over 5,000 people attended the opening of the iconic store.
“It is impossible to ignore the humanitarian crisis caused by the war in Ukraine. And it is impossible to imagine the Golden Arches representing the same hope and promise that led us to enter the Russian market 32 years ago,” stated Chris Kempczinski in a letter to the employees. Kempczinski is the Chief Executive Officer of the company.
The McDonald's name, logo, and branding are no longer allowed to be used, while the trademarks are still retained in Russia. The restaurants currently in Russia will“de arch” and the company will sell the establishments to a local buyer.
The company will also make sure that the 62,000 employees in the country will be paid till transactions come to an end and continue with their job with the future owner. McDonald's in Ukraine remains closed amidst conflict and the corporation is paying full salaries to its workers.
Other western firms follow suit
Moreover, earlier today Renault stated that it is going to sell a majority of its stake in Avtovaz to a Russian science institute. The French carmaker added that the deal includes a six-year buy-back option for the state. Additionally, several western companies are planning to sell their Russian assets or hand them to local managers. Global firms with stakes in Russia are scrambling to comply with the strict sanctions following the conflict.
McDonald's Russia
MENAFN16052022005762012635ID1104222894
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.