After pausing its Russian operations in March, McDonald’s has decided to sell its Russian business entirely. The company plans to sell all 850 restaurants to a local buyer, who will no longer use the McDonald’s name, logo, or branding. 🤭
The move comes amid rising pressure from employees/consumers and represents a significant departure for the brand that is often looked to as an icon of capitalism and globalism.
McDonald’s CEO Chris Kempczinski wrote in a message obtained by The New York Times that “…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.”
McDonald’s has been paying its 62,000 employees throughout its operations pause and noted it would continue to work with the local buyer to ensure a smooth transition through the completion of any sale.
From a financial perspective, the company will record a write-off of $1.2-$1.4 billion and certain “foreign currency translation losses.” 🌎 But, overall, the stock is taking the news in stride, down just (-0.41%) today.
Given the company’s Russian business represented a tiny portion of the company’s revenues, this move represents more of a symbolic shift than a financial one. 💡