McDonald’s Selling Russian Operations to Local Buyer, To Debrand All Restaurants

After more than three decades, McDonald’s (NYSE: MCD) decided to pull the plug on its Russian operations, and sell all of its restaurants to a local buyer.

After pausing all Russian operations back in March in response to Moscow’s military operation in Ukraine, McDonald’s re-evaluated its business strategy, deciding to leave the country entirely. The world’s biggest burger chain announced that it will sell its Russian business— comprised of 850 restaurants— to a local buyer after 32 years of operations, and will “de-arch” the locations, stripping them of its name, logo, and branding.

According to an internal memo seen by the New York Times, McDonald’s will continue to pay its Russian employees until the transaction is complete, and they have found ulterior places of employment.

As a result of the sale, the fast food giant is expected to a take on a write-off of anywhere between $1.2 billion and $1.4 billion, and acknowledge “foreign currency transaction losses,” McDonald’s said in a statement. Since pausing operations, it has cost the company about $55 million per month to keep its staff, landlords, and suppliers on the payroll in Russia and Ukraine.

“Some might argue that providing access to food and continuing to employ tens of thousands of ordinary citizens is surely the right thing to do. But 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,” said the company’s CEO Chris Kempczinski as cited by the New York Times.


Information for this briefing was found via McDonald’s and the NYT. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

New Google Street View-Like Project Shows How the War Has Destroyed Ukraine

A collective of Ukrainian organizations marked the anniversary of Russia’s invasion of Ukraine through a...

Monday, March 27, 2023, 05:21:00 PM

Russian Cargo Airline to Refurbish Old Planes Amid International Sanctions

Russia’s AirBridgeCargo, which was hit with international sanctions last year after Russia began its invasion...

Monday, April 3, 2023, 10:49:52 AM

Russia Says Ukraine Staged Bucha Corpses But Satellite Images Say Otherwise

A series of satellite images debunked what Russia claims to be staged killings of civilians...

Tuesday, April 5, 2022, 03:06:00 PM

Biden Confirms That G-7 Nations Will Announce Ban On Russian Gold Imports

Leaders of the G-7 nations are set to announce a ban on Russian gold imports...

Monday, June 27, 2022, 10:23:00 AM

Russia Will Limit Retail Investor Access To Shares From ‘Unfriendly’ Countries

Beginning October 1, the Bank of Russia will apply restrictions on retail investors’ access to...

Monday, September 12, 2022, 09:33:59 AM