McDonald’s (NYSE: MCD) closed more than 800 restaurants in response to Russia’s invasion of Ukraine. decide to go abroad By selling all its restaurants. However, the fast food giant is committed to making sure its employees can work for potential buyers.
According to reports CNN Business“The humanitarian crisis and unpredictable operating environment caused by the war in Ukraine has led McDonald’s to conclude that it is no longer valid or consistent with McDonald’s values to continue to have operations in Russia,” the company said.
More than 60,000 employees are expected to be paid until the purchase is completed, and McDonald’s will ensure they can work for the new owners.
CEO Chris Kempczinski said the decision to stop at Russia Very difficult, but added: “We have a commitment to our global community and must stay true to our values. And our commitment to our values means we can’t let the arches shine there anymore.
During the Glasnost period, McDonald’s opened its first restaurant in Moscow on January 31, 1990, and crowds flocked to taste the famous burger. The opening ceremony represents the country’s intention to open the door to the outside world for millions of Russians.
Dara Goldstein, a Russia expert at Williams College, said: “There’s a very visible crack in the Iron Curtain. It’s very symbolic of the changes that are taking place.
GlobalData CEO Neil Sanders said in a report Monday that McDonald’s exit “represents a new isolationism in Russia that must now look inward for investment and mainstream brand development.”
Sanders added that since McDonald’s almost owns restaurant In Russia “means there is a company with a wealth of assets for sale”.
“However, given the circumstances of the sale, the financial difficulties faced by potential Russian buyers and the fact that McDonald’s will not authorize its brand name or identity, it is unlikely that the sale price will come close to pre-invasion book value. The deal. »
First published on ValueWalk here.
Image Credits: Mikechie Esparagoza; Pixels; Thanks!