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McDonald’s to sell all Russian restaurants as it moves out of country

McDonald's

McDonald's will begin "de-arching" all its Russian restaurants, which will soon be sold.

The fast-food giant has confirmed it is pulling out of the country as a result of President Vladimir Putin's invasion and ongoing war with Ukraine.

The company has been in Russia for 30 years - with the opening of its first restaurant in Moscow in 1990 a symbolic moment in the history of the Soviet Union.

McDonald's revealed in March it was pulling out of Russia and has now begun the sale of its Russian restaurants.

READ MORE: MCDONALD’S SHUTS DOWN IN RUSSIA AFTER PRESSURE ON SOCIAL MEDIA

The crisis caused by the war in Ukraine, and the unpredictable operational environment, have led McDonald’s to no choice.

employer

As part of its decision to exit, the company is following the sale of its portfolio of McDonald’s restaurants in Russia to a local buyer.

The company plans to start the process of “de-Arching” those restaurants, which means no longer using the McDonald’s name, logo, branding, and menu, though the company will continue to keep its trademarks in Russia.

McDonald’s priorities are to ensure the employees of McDonald’s Russia continue to be paid until the finish of any transaction and that employees have future employment with any possible buyer.

“We have a long history of establishing deep, local roots wherever the Arches shine. We’re exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to McDonald’s make today’s announcement extremely difficult. However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there.”

McDonald’s President and Chief Executive Officer, Chris Kempczinski

McDonald’s restaurants in Ukraine still remain shut while the company persists to pay full salaries for its employees in the country and continues to support local efforts led by Ronald McDonald House Charities.

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Across Europe, the McDonald’s System is supporting Ukrainian refugees via food donations, housing, and employment.

As a result of its exit from Russia, the company wishes to record a charge, which is mostly non-cash, of approximately $1.2-1.4 billion to write off its net investment in the market and recognize foreign currency translation losses earlier recorded in shareholders’ equity.

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