The restaurants had been temporarily shut down on March 8.
After Renault, the flight of multinationals from Russia continues: McDonalds has just announced the end of its activity in Moscow, in a press release.
The humanitarian crisis caused by the war in Ukraine and the unpredictable operating environment it has precipitated have led McDonald’s to conclude that it is no longer possible to continue to hold a business in Russia, and that it is not compliant to McDonald’s values.
The American giant wants to find buyers for its 850 stores, and allow employees to continue working. But apart from trademarks registered in the country, all activity will disappear. Nothing is mentioned about the franchised restaurants, which had remained open after the announcement of the withdrawal of McDo, on March 8.
The firm quantifies its losses between 1.2 and 1.4 billion dollars in the operation, as well as losses in foreign currencies.
Like other brands that are symbols of American culture around the world, such as Coca-Cola or Starbucks, the fast-food chain was then the subject of a boycott call on social networks.
“We are committed to our global community and must remain adamant about our values,” Group CEO Chris Kempczinski said in the statement. “Respecting our values means that we can no longer keep the Arches (McDonald’s logo, editor’s note)” in Russia, he added.
Present in Russia for more than 30 years, McDonald’s has approximately 850 restaurants and 62,000 employees. The group estimates that it will record a charge of between 1.2 billion and 1.4 billion dollars due to its withdrawal from the country.
Russia, where McDonald’s directly manages more than 80% of the restaurants bearing its name, accounts for 9% of the company’s total revenue and 3% of its operating profit.
The group is seeking to resell its entire Russian portfolio to a local player, but has not yet given the name of a buyer. Anyone who takes over the activity will not be able to use the name, logo or menus of McDonald’s.
Until a transaction is finalized, the company agrees to continue paying its employees and wants to ensure that they continue to be hired by the future acquirer.