McDonald’s is closing its doors in Russia, bringing an end to an age of hope and deepening Russia’s isolation over the Ukraine conflict.
The burger behemoth from Chicago stated on Monday that it is selling its 850 locations in Russia. McDonald’s stated it will look for a buyer who will keep its 62,000 Russian employees employed and pay them until the sale is completed.
Some may argue that ensuring food security and continuing to employ tens of thousands of regular people is the correct thing to do. In a message to staff, McDonald’s President and CEO Chris Kempczinski stated that it is impossible to ignore the humanitarian crisis caused by the war in Ukraine.
It’s the first time McDonald’s has de-arched, or left, a large market, according to the firm. It intends to begin eliminating golden arches and other company-related insignia and signage. McDonald’s has stated that it will preserve its trademarks in Russia and, if required, take legal action to enforce them.
McDonald’s said in early March that it would be temporarily shutting its outlets in Russia, but that its employees would be paid. It was an expensive decision. The business reported late last month that the restaurant closures were costing them $55 million per month. It also lost merchandise worth $100 million.
McDonald’s has also shuttered 108 restaurants in Ukraine, although its employees are still paid.
McDonald’s stated that leaving Russia will not affect its plan to open a net 1,300 outlets this year, contributing around 1.5 percent to overall sales growth.
McDonald’s Corp. announced last month that it earned $1.1 billion in the first quarter, down from $1.5 billion a year ago. The total revenue was around $5.7 billion.
McDonald’s stock finished Monday at $244.04, down $1.
