A McDonald’s in Moscow. McDonald’s owns 84% of its restaurants in Russia.
Photo:
The Wall Street Journal
McDonald ’s Corp.
MCD 0.35%
said it would quit Russia and sell its business there, ending more than three decades in the country over its invasion of Ukraine.
The fast-food giant joins a raft of Western companies, from auto makers to oil producers, exiting Russia—after in some cases having initially paused operations—as the war in Ukraine rumbles on.
McDonald’s
MCD 0.35%
said in March that it was temporarily closing its 847 restaurants in Russia, while continuing to pay the 62,000 people it employs there. The Chicago-based company owns and operates 84% of its restaurants in Russia, with the rest run by franchisees.
On Monday,
McDonald’s
MCD 0.35%
said that continued ownership of its business in Russia was no longer tenable nor “consistent with McDonald’s values.”
Moscow’s first McDonald’s opened in 1990.
Photo:
Victor Yurchenko/Associated Press
“We have a commitment to our global community and must remain steadfast in our values,” Chief Executive
Chris Kempczinski
said.
The company said it would pursue the sale of its entire portfolio of restaurants in Russia to a local buyer. The company said it expected to record an accounting charge of between $1.2 billion and $1.4 billion in connection with the move, and recognize a significant foreign currency translation loss.
Western companies across sectors have been under pressure to divest their operations in Russia since the country invaded Ukraine in late February. The invasion triggered waves of sanctions from Western governments that have also made it hard to continue to do business in the country.
Also Monday, French auto maker
Renault SA
reached a deal to cede its 68% stake in Russia’s biggest car maker to a state-backed entity.
Write to Michael Wright at [email protected]
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