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The iconic American brand was one of the first, along with Ikea, to go to Russia after the fall of the Wall in the early 1990s. McDonald’s first opened its doors in the country more than thirty years ago in the waning days of the Soviet Union. Then there were long lines of Russians who, at that time, had the first chance to try the western company’s burgers and fries.
Earlier this spring, McDonald’s already closed its 847 restaurants. Many Russian franchisees then tilted the M on the roof and opened again under a new name on their own initiative.
For McDonald’s, Russia is a relatively large market, accounting for – they say – 9% of turnover, and just under 3% of operating profit. The company expects to write off $1.4 billion. The fast food chain in Russia employs 62,000 people.
But because of the war, the chain no longer finds it in accordance with its own values to remain there longer. Another factor is that, partly due to international sanctions, Russia has become very isolated and the situation in Russia has therefore become ‘unpredictable’.
McDonald’s opened in Moscow in 1990.
Ⓒ ANP/HH
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It is now planned to transfer the entire portfolio of McDonald’s restaurants in Russia to a local buyer. The well-known McDonald’s logo will be removed from the facade everywhere. The chain strives to ensure that all staff continue to be paid until a new owner has been found and the retention of employment has been arranged.
Investors are already pushing the share in premarket trading 1% higher.
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