Both McDonald’s (NYSE: MCD) and Starbucks (NASDAQ: SBUX) are shutting down restaurants and cafes across Russia, while Coca-Cola (NYSE: KO) will no longer sell its products in the country, in response to President Vladimir Putin’s military attack on Ukraine.
After several weeks of pondering whether or not to pack up its golden arches, McDonald’s CEO Chris Kempczinski on Tuesday announced the fast food chain would temporarily close down all of its 847 restaurants across Russia, in an effort to retaliate against the country’s invasion of Ukraine. “We serve millions of Russian customers each day who count on McDonald’s. In the thirty-plus years that McDonald’s has operated in Russia, we’ve become an essential part of the 850 communities in which we operate,” he said, adding that, “at the same time, our values mean we cannot ignore the needless human suffering unfolding in Ukraine.”
Kempczinski assured that all of its 62,000 Russian employees would continue to receive their salaries despite the shutdown. McDonald’s, a nostalgic component of everything that is Western capitalism, became an icon in Russia when its first location opened in central Moscow in 1990, marking a symbolic end to the Soviet-era and an embrace of globalization.
Given McDonald’s extensive size and global influence, it is no wonder that other restaurants and US-based brands would join suit. Also on Tuesday, Starbucks said it will suspend all of is businesses in Russia and halt all shipments into the country. “Our licensed partner has agreed to immediately pause store operations and will provide support to the nearly 2,000 [employees] in Russia who depend on Starbucks for their livelihood,” said CEO Kevin Johnson. “We condemn the horrific attacks on Ukraine by Russia and our hearts go out to all those affected.”
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Meanwhile Coca-Cola also on Tuesday said it be “suspending its business in Russia,” and will no longer sell its products in the country. “We will continue to monitor and assess the situation as circumstances evolve,” the soft drink maker said in a statement.
Information for this briefing was found via McDonald’s, Starbucks, and Coca-Cola. 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.
