McDonald’s to exit Russian market altogether

MCDONALD’S Corp said on Monday (May 16) that it will exit the Russian market after 30 years of operating its restaurants in the country, following Moscow’s invasion of Ukraine. The company said in a statement Monday (May 16) that it has initiated a process to sell its business in the country.

In March, the seller of hamburgers and milkshakes closed all its restaurants in Russia, including the outlet in the iconic Pushkin Square location.

McDonald’s is pursuing a sale of its entire portfolio of restaurants to a local buyer and will “de-arch” the outlets, removing the McDonald’s name, logo, branding and menu, though the company will retain its trademarks in Russia. 

As part of the exit, the company expects to record a non-cash charge of about US$1.2 billion to US$1.4 billion.

“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,” McDonald’s said.

McDonald’s will continue to pay local staff while it seeks a buyer. Currently 62,000 people work in the group’s Russian restaurants.

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McDonald’s shares rose 1 per cent in premarket trading.

REUTERS, BLOOMBERG