Hundreds of Soviet patrons queue outside the first McDonald’s restaurant in Moscow
(Picture: Reuters)McDonald’s said it will pull out of Russia after more than 30 years of operation in the country and take a write-off of $1.2 billion to $1.4 billion for the move.
The seller of hamburgers and milkshakes has initiated a process to sell the Russian business after temporarily closing its restaurants there, the company said in a statement Monday.
It said the humanitarian crisis in Ukraine amid the war there and the unpredictable operating environment meant it was no longer tenable to operate in Russia, “nor is it consistent with McDonald’s values.”
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.
McDonald’s had said in March that it was temporarily halting business in Russia. The company’s first branch in Moscow opened in 1990, just before the fall of the Soviet Union.
McDonald’s will continue to pay local staff while it seeks a buyer. Currently 62,000 people work in the group’s Russian restaurants.
McDonald’s shares rose 1% in premarket trading.
