{"id":1476780,"date":"2022-05-16T13:30:43","date_gmt":"2022-05-16T17:30:43","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1476780"},"modified":"2022-05-16T13:30:46","modified_gmt":"2022-05-16T17:30:46","slug":"mcdonalds-ending-business-in-russia-after-32-years","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mcdonalds-ending-business-in-russia-after-32-years\/","title":{"rendered":"McDonald\u2019s Ending Business In Russia After 32 Years"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmcdonalds-ending-business-in-russia-after-32-years%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1476780&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/dw-wp-production.imgix.net\/2022\/05\/Untitled-design-94.jpg?w=1200&#038;h=800&#038;ixlib=react-9.3.0\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p>McDonald\u2019s announced on Monday that it would sell its business in Russia after 32 years of operation in the country.<\/p>\n<p>The popular fast-food franchise said in a news release that Russia\u2019s invasion of Ukraine and other unpredictabilities are among the reasons for its departure.<\/p>\n<p>\u201cWe\u2019re 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\u2019s make today\u2019s announcement extremely difficult,\u201d Chris Kempczinski, McDonald\u2019s president and chief executive officer, said in the <a href=\"https:\/\/www.prnewswire.com\/news-releases\/mcdonalds-to-exit-from-russia-301547731.html\" target=\"_blank\" rel=\"noopener\">press release<\/a>.<\/p>\n<p>\u201cHowever, 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,\u201d he added.<\/p>\n<p>McDonald\u2019s restaurants in\u00a0<span class=\"xn-location\">Ukraine<\/span> have already been closed while the company has paid full salaries to its employees, according to the company. The corporation has also continued its support for Russia\u2019s Ronald McDonald House Charities.<\/p>\n<p>\u201cAcross <span class=\"xn-location\">Europe<\/span>, the McDonald\u2019s System is supporting Ukrainian refugees through food donations, housing and employment,\u201d the release added.<\/p>\n<p>The closures will impact 847 McDonald\u2019s locations in Russia.<\/p>\n<p>\u201cThe departure of McDonald\u2019s from Russia is particularly notable given its arrival was emblematic of a rush among Western companies in the 1990s to enter the country, seeking to profit from its move from communism to capitalism. McDonald\u2019s opened its first Russian location in Moscow\u2019s Pushkin Square in 1990, when thousands of locals lined up to get their first taste of the American chain\u2019s burgers and fries,\u201d the Wall Street Journal <a href=\"https:\/\/www.wsj.com\/articles\/mcdonalds-to-exit-from-russia-11652697074\" target=\"_blank\" rel=\"noopener\">reported<\/a>.<\/p>\n<p>The financial loss will be significant, according to Neil Saunders, managing director of GlobalData.<\/p>\n<p>\u201cThe fact that McDonald\u2019s owns most of its restaurants in Russia means there is an asset rich business to sell,\u201d Saunders <a href=\"https:\/\/www.cnn.com\/2022\/05\/16\/business-food\/mcdonalds-russia-exit\/index.html\" target=\"_blank\" rel=\"noopener\">said<\/a> on Monday. \u201cHowever, given the circumstances of the sale, the financial challenges faced by potential Russian buyers, and the fact that McDonald\u2019s will not license its brand name or identity, it is unlikely the sale price will be anywhere near the pre-invasion book value of the business.\u201d<\/p>\n<p>The Journal reported that Russia\u2019s state-run TASS news agency has also announced on Monday that the former McDonald\u2019s restaurants will reopen under a different name next month.<\/p>\n<p>McDonald\u2019s also revealed that it would write off up to $1.4 billion as part of its withdrawal, noting strong growth throughout the rest of its locations, which are 95% locally owned and operated.<\/p>\n<p>The fast-food company is not the only corporation to announce its departure from doing business in Russia. French car manufacturer Renault also sold its assets to the Russian government, according to the company.<\/p>\n<p>\u201cThe deal, which includes a six-year option for the carmaker to buy back its stake in Avtovaz, the maker of iconic Soviet brand Lada cars, effectively marks the first major nationalization of a Western company\u2019s Russian assets since Moscow invaded Ukraine in late February,\u201d Forbes <a href=\"https:\/\/www.forbes.com\/sites\/roberthart\/2022\/05\/16\/renaults-russian-assets-nationalized-after-carmaker-sells-to-moscow\/?sh=21cf3c4b60e9\" target=\"_blank\" rel=\"noopener\">reported<\/a>.<\/p>\n<p>According to the report, Renault\u2019s CEO Luca de Meo noted that the decision was the \u201cresponsible choice\u201d regarding its hub of 45,000 employees in Russia.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>McDonald\u2019s announced on Monday that it would sell its business in Russia after 32 years of operation in the country.The popular fast-food franchise said in a news release that Russia\u2019s<\/p>\n","protected":false},"author":325,"featured_media":1483249,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1476780","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1476780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/325"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1476780"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1476780\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1483249"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1476780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1476780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1476780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}