The Chicago-based company announced in early March that it was temporarily closing its stores in Russia but would continue to pay workers. On Monday, it said it would ask a Russian buyer to hire those workers and pay them until the sale closes. It did not identify a potential buyer.
CEO Chris Kempzinski said the decision to leave “dedication and loyalty to McDonald’s” to employees and hundreds of Russian suppliers was a difficult one.
“However, we have a commitment to the global community and we must remain steadfast in our values,” Kempzinski said in a statement, “and our commitment to our values means we can no longer keep the arches shining there.”
As it seeks to sell its restaurant, McDonald’s says it plans to start removing gold arches and other signs and symbols with the company’s name. It says it will keep their trademark in Russia.
Russia’s first McDonald’s opened in central Moscow more than three decades ago, shortly after the fall of the Berlin Wall. It was a powerful symbol of easing the Cold War tensions between the United States and the Soviet Union.
McDonald’s was the first American fast food restaurant to open in the Soviet Union, collapsing in 1991. McDonald’s decision to leave comes after other American food and beverage giants, including Coca-Cola, Pepsi and Starbucks, shut down operations in Russia. Facing Western sanctions.
Corporations from British energy giant Shell and BP to French carmaker Renault have all come out of Russia, hitting their bottom line as they seek to sell their holdings there. Other companies have remained, at least partially, facing some blowbacks.
McDonald’s says it expects to record charges against রা 1.2 billion to $ 1.4 billion in revenue for leaving Russia.
Its restaurants are closed in Ukraine, but the company says it has continued to pay its employees there in full.
McDonald’s has more than 39,000 locations in more than 100 countries. Owned by most franchisees – only 5% owned and operated by the company.
McDonald’s says the exit from Russia will not change its forecast to add 1,300 restaurants to the net this year, which will contribute about 1.5% to sales growth across the company.
Last month, McDonald’s reported revenue of প্রথম 1.1 billion in the first quarter, down from $ 1.5 billion a year earlier. Revenue was about $ 5.7 billion.