The American fast food chain McDonald's Corp. is leaving Russia after more than three decades and will sell its entire portfolio of restaurants to a local buyer, several media and news agencies reported on Monday, citing McDonald's announcement.
"The humanitarian crisis caused by the war in Ukraine and the unpredictable operating environment that caused it led McDonald's to the conclusion that the continued ownership of the business in Russia is no longer sustainable and is not in line with McDonald's values," the fast food chain said in a statement.
McDonald's restaurants in Ukraine are closed for the time being, but workers are still being paid.
The American fast food chain McDonald's wants to sell its interests to a local buyer in Russia, and is trying to ensure the future employment of its 62,000 workers in a contract.
The company has 847 restaurants in Russia. Although McDonald's retains its trademarks in Russia, it will not allow the use of the company name, logo, branding and menu after the sale.
The American fast food chain generated 9 percent of its revenue last year, about 2 billion dollars, on the Russian and Ukrainian markets. Since closing its restaurants in Russia and Ukraine, the company has been losing $55 million a month. Due to the costs incurred in connection with the departure from Russia, the company expects a one-time write-off of $1.2-1.4 billion on its balance sheet.
Source: Magyar Hírlap
Image: AFP
