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McDonald’s leaves Russia and sells all its assets. The company has 850 restaurants and 62,000 employees

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“We are committed to our international community and we must remain adamant about our values,” CEO Chris Kempczinski said in a statement.

“Respecting our values ​​means we can no longer maintain the ‘Arches’ (McDonald’s logo) in Russia,” he said.

“This is a complicated issue, unprecedented and with far-reaching consequences,” wrote Chris Kempczinski, McDonald’s chief executive, in a message to franchisees, employees and suppliers, writes The New York Times.

He added: “Some might argue that securing access to food and continuing to employ tens of thousands of ordinary citizens is certainly 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 Bows” (those that make up the letter M in the logo – ed.) Representing the same hope and promise that led us to enter the Russian market 32 ​​years ago. “

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McDonald’s has assured that its employees in Russia will continue to be paid until the conclusion of any transaction and that it will ask potential buyers to keep the employees.

McDonald’s says it expects to impact $ 1.2 billion to $ 1.4 billion from leaving Russia.

Its Ukrainian restaurants are closed, but the company said it continues to pay full salaries to its employees there.

McDonald’s has over 39,000 locations in over 100 countries. Most are owned by franchisees – only about 5% are owned and operated by the company.

McDonald’s said leaving Russia would not change the company’s forecast for adding a net of 1,300 restaurants this year, which would contribute about 1.5% to company-wide sales growth.

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Last month, McDonald’s reported earnings of $ 1.1 billion in the first quarter, down from more than $ 1.5 billion a year earlier. Revenue was nearly $ 5.7 billion.

Russia’s first McDonald’s opened in the middle of Moscow more than three decades ago, shortly after the fall of the Berlin Wall. It was a powerful symbol of the relaxation of tensions in the Cold War between the United States and the Soviet Union.

McDonald’s was the first American fast food restaurant to open in the Soviet Union, which collapsed in 1991.

McDonald’s currently has 850 restaurants and 62,000 employees in the Russian Federation.

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