• About Us
  • Contact Us
  • Cookie policy (EU)
  • Home
  • Privacy Policy
  • Video
  • Write for us
Today Headline
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
No Result
View All Result
TodayHeadline
No Result
View All Result

McDonalds selling its Russian business – CBS News

May 16, 2022
in News
0
McDonalds selling its Russian business – CBS News
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

McDonald’s said Monday that it’s started the process of selling its Russian business, which includes 850 restaurants that employ 62,000 people, making it the latest major Western corporation to exit Russia since it invaded Ukraine in February.

The fast-food giant pointed to the humanitarian crisis caused by the war, saying holding onto its business in Russia “is no longer tenable, nor is it consistent with McDonald’s values.”

The Chicago-based company announced in early March that it was temporarily closing its stores in Russia but would continue to pay employees. On Monday, it said it would seek to have a Russian buyer hire those workers and pay them until the sale closes. It didn’t identify a prospective buyer.

CEO Chris Kempczinski said the “dedication and loyalty to McDonald’s” of employees and hundreds of Russian suppliers made it a difficult decision to leave.

“However, we have a commitment to our global community and must remain steadfast in our values,” Kempczinski said in a statement, “and our commitment to our values means that we can no longer keep the arches shining there.”

As it tries to sell its restaurants, McDonald’s said it plans to start removing golden arches and other symbols and signs with the company’s name. It said it will keep its trademarks in Russia.

“This was the very best of a series of difficult choices,” James O’Rourke, professor of management at the University of Notre Dame’s Mendoza College of Business, said in an email. “Under this arrangement, McDonald’s Russian employees will have a steady employment future, ordinary citizens will have a mostly familiar neighborhood spot for a sandwich and a soft drink, and by ‘de-arching’ the 850 stores in Russia McDonald’s Corporation will protect the brand and recover at least some of its capital investment.”  

The first McDonald’s in Russia opened in the middle of Moscow more than three decades ago, shortly after the fall of the Berlin Wall. It was a powerful symbol of the easing of Cold War tensions between the United States and Soviet Union.

McDonald’s was the first American fast food restaurant to open in the Soviet Union, which would collapse in 1991.


How effective have sanctions been against Russia?

04:26

McDonald’s decision to leave comes as other American food and beverage giants including Coca-Cola, Pepsi and Starbucks have paused or closed operations in Russia in the face of Western sanctions.

Corporations from British energy giants Shell and BP to French carmaker Renault have pulled out of Russia, taking a hit to their bottom lines as they seek to sell their holdings there. Other companies have stayed at least partially, with some facing blowback.

On Monday, Renault gave its Russian assets to the Kremlin, both parties announced, “marking the first major nationalization since the onset of sanctions over Moscow’s military campaign in Ukraine,” Agence France-Presse said.

McDonald’s said it expects to record a charge against earnings of between $1.2 billion and $1.4 billion over leaving Russia.

Its restaurants in Ukraine are closed, but the company said it is continuing to pay full salaries for its employees there.

McDonald’s has more than 39,000 locations across more than 100 countries. Most are owned by franchisees – only about 5% are owned and operated by the company.

McDonald’s said exiting Russia won’t change its forecast of adding a net 1,300 restaurants this year, which will contribute about 1.5% to companywide sales growth.

Last month, McDonald’s reported that it earned $1.1 billion in the first quarter, down from more than $1.5 billion a year earlier. Revenue was nearly $5.7 billion.


More

Previous Post

JetBlue launches hostile takeover of Spirit after its earlier acquisition was rejected – The Verge

Next Post

FDA head insists no baby formula shortage, just distribution issues – New York Post

Related Posts

News

Former Tory Party Chair Lord Baker Says Boris Johnson Is Taking Conservatives For Granted

(Alamy) 3 min read34 min...

Read more
News

‘Westworld’ Co-Creator Lisa Joy On New Evan Rachel Wood In Season 4 – Deadline

Warning: This interview contains spoilers...

Read more
News

Gobowen hospital IT worker hailed with award

AN IT worker has been...

Read more
News

Landmark Roe v Wade abortion ruling overturned by US Supreme Court

The US Supreme Court has...

Read more
News

Leah Williamson: The England captain with impostor syndrome

Lifelong Arsenal fan Leah Williamson...

Read more
Load More
Next Post
FDA head insists no baby formula shortage, just distribution issues – New York Post

FDA head insists no baby formula shortage, just distribution issues - New York Post

  • Trending
  • Comments
  • Latest
Six times actors really romped in sex scenes that make 365 DNI look tame

Six times actors really romped in sex scenes that make 365 DNI look tame

Ex-porn star Lana Rhoades flaunts 2.5st weight loss two weeks after giving birth

Ex-porn star Lana Rhoades flaunts 2.5st weight loss two weeks after giving birth

Horror as goat gives birth to ‘humanoid kid’ with baby-like face

Classic Macaroni Salad (quick and creamy)

Classic Macaroni Salad (quick and creamy)

Roe v. Wade Overturned and Privacy Concerns

Australian Shepherd Pup Can’t Help Falling In Love With Orphaned Kittens

Hispanic voters' support for GOP is increasing

Spice Up a Romantic Night

Spice Up a Romantic Night with Couples Sex Toy Kits

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

Roe v. Wade Overturned and Privacy Concerns

Australian Shepherd Pup Can’t Help Falling In Love With Orphaned Kittens

Roe v. Wade Overturned and Privacy Concerns

Australian Shepherd Pup Can’t Help Falling In Love With Orphaned Kittens

Hispanic voters' support for GOP is increasing

  • Real Estate
  • Education
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

No Result
View All Result
  • Real Estate
  • Education
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Posting....