McDonald's Russia: Fast food chain leaving country altogether amid Ukraine war

5/17/2022 2:20:00 PM

McDonald's stock barely changed in pre-market trading Monday after the announcement the chain is leaving Russia altogether amid the Ukraine war.

McDonald's stock barely changed in pre-market trading Monday after the announcement the chain is leaving Russia altogether amid the Ukraine war.

The burger chain will sell its Russia business, saying the 'humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values.'

Email CHICAGO -- McDonald's became the symbol of glasnost in action 30 years ago when it opened its first restaurant in Moscow.Email CHICAGO -- McDonald's became the symbol of glasnost in action 30 years ago when it opened its first restaurant in Moscow.Email CHICAGO -- McDonald's became the symbol of glasnost in action 30 years ago when it opened its first restaurant in Moscow.Email CHICAGO -- McDonald's became the symbol of glasnost in action 30 years ago when it opened its first restaurant in Moscow.

But after temporarily shutting down more than 800 restaurants following the invasion of Ukraine, McDonald's has decided to leave Russia altogether.The burger chain will sell its Russia business, saying the"humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values.The burger chain will sell its Russia business, saying the"humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values." In March, shortly after the war began, McDonald's followed other Western companies and temporarily shut down its restaurants in Russia." In March, shortly after the war began, McDonald's followed other Western companies and temporarily shut down its restaurants in Russia.RELATED: Ikea, Apple, McDonald's among companies cutting ties with Russia over Ukraine invasion: LIST Once the sale is finalized, the Russian restaurants will be"de-Arched," meaning the locations will no longer be allowed to use the McDonald's name, logo or menu.RELATED: Ikea, Apple, McDonald's among companies cutting ties with Russia over Ukraine invasion: LIST Once the sale is finalized, the Russian restaurants will be"de-Arched," meaning the locations will no longer be allowed to use the McDonald's name, logo or menu.McDonald's said its employees will still be paid until the transaction closes and that"employees have future employment with any potential buyer.McDonald's said its employees will still be paid until the transaction closes and that"employees have future employment with any potential buyer.

" CEO Chris Kempczinski said he's proud of the more than 60,000 workers employed in Russia and said the decision was"extremely difficult." CEO Chris Kempczinski said he's proud of the more than 60,000 workers employed in Russia and said the decision was"extremely difficult." CEO Chris Kempczinski said he's proud of the more than 60,000 workers employed in Russia and said the decision was"extremely difficult." "However, we have a commitment to our global community and must remain steadfast in our values.And our commitment to our values means that we can no longer keep the Arches shining there," he said.And our commitment to our values means that we can no longer keep the Arches shining there," he said.End of an era The decision brings to a remarkable end McDonald's three-decade relationship with Russia.End of an era The decision brings to a remarkable end McDonald's three-decade relationship with Russia.McDonald's opened the doors of its first restaurant in Moscow on Jan.McDonald's opened the doors of its first restaurant in Moscow on Jan.McDonald's opened the doors of its first restaurant in Moscow on Jan.

31, 1990.More than 30,000 were served and the Pushkin Square location had to stay open hours later than planned because of the crowds.More than 30,000 were served and the Pushkin Square location had to stay open hours later than planned because of the crowds.More than 30,000 were served and the Pushkin Square location had to stay open hours later than planned because of the crowds.RELATED: In Ukraine and internationally, scenario darkens for Russia Its arrival in Moscow was about more than just Big Macs and fries, noted Darra Goldstein, a Russia expert at Williams College.It was the most prominent example of Soviet Union President Mikhail Gorbechev's attempt to open up his crumbling country to the outside world.It was the most prominent example of Soviet Union President Mikhail Gorbechev's attempt to open up his crumbling country to the outside world."There was a really visible crack in the Iron Curtain," she said Monday."There was a really visible crack in the Iron Curtain," she said Monday."There was a really visible crack in the Iron Curtain," she said Monday.

"It was very symbolic about the changes that were taking place."It was very symbolic about the changes that were taking place." About two years later, the Soviet Union would collapse.A big cost to leaving McDonald's will take a significant write-off from exiting Russia - between $1.A big cost to leaving McDonald's will take a significant write-off from exiting Russia - between $1.A big cost to leaving McDonald's will take a significant write-off from exiting Russia - between $1.2 billion to $1.4 billion.4 billion.4 billion.

Shares were barely changed in premarket trading.Shares were barely changed in premarket trading.In its most recent earnings report, McDonald's said closing its restaurants in Russia had cost it $127 million last quarter.In its most recent earnings report, McDonald's said closing its restaurants in Russia had cost it $127 million last quarter.Nearly $27 million came from staff costs, payments for leases and supplies.The other $100 million was from food and other items it will have to dump.The other $100 million was from food and other items it will have to dump.The other $100 million was from food and other items it will have to dump.McDonald's had 847 restaurants in Russia at the close of last year, according to an investor document.McDonald's had 847 restaurants in Russia at the close of last year, according to an investor document.

Together with another 108 in Ukraine, they accounted for 9% of the company's revenue in 2021.Together with another 108 in Ukraine, they accounted for 9% of the company's revenue in 2021.Danielle Wiener-Bronner contributed to this report.Danielle Wiener-Bronner contributed to this report.The video in the player above is from an earlier report.The video in the player above is from an earlier report.The-CNN-Wire & 2022 Cable News Network, Inc., a Time Warner Company., a Time Warner Company., a Time Warner Company., a Time Warner Company.

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6 months from now the obesity rate in Russia will be down. Now we need to get McDonald's out of poor neighborhoods. Toxic food. McDonald's and Starbucks should leave China too. Newsworthy in Chicago because...?

McDonald's Russia: Fast food chain leaving country altogether amid Ukraine warThe burger chain will sell its Russia business, saying the 'humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values.' Good. Healthier Russians Menos comida chatarra 🤣🤡

McDonald's Russia: Fast food chain leaving country altogether amid Ukraine warThe burger chain will sell its Russia business, saying the 'humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values.' A great way to get rid of unhealthy foods. Hopefully the US is next!

McDonald's Russia: Fast food chain leaving country altogether amid Ukraine warThe burger chain will sell its Russia business, saying the 'humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values.' I still remember when McDonalds first opened in Moscow. They had to build the entire supply chain to ensure quality. We beat tyranny once before, lets hope we can do it again. PutinIsaWarCriminal

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