After more than 30 years in Russia, McDonald’s has permanently left the country

American fast-food giant McDonald’s, which closed its stores in Russia in early March, announced Monday that he was leaving the country and will sell all its operations, in reaction to the invasion of Ukraine.

“We are focused on our global community and we must remain uncompromising in our values, ”Group CEO Chris Kempczinski was quoted as saying in a company statement.

“Respecting our values ​​means we can’t continue to maintain” McDonald’s in Russia, he added.

Present in Russia for over 30 years, McDonald’s has 850 restaurants and 62,000 employees.

The company announced the temporary closure of all its establishments and the suspension of its operations in the country on March 8, following in the footsteps of other multinationals that have distanced themselves from Moscow.

Russia, where McDonald’s directly manages more than 80% of its restaurants with its name, represents 9% of the company’s total turnover and 3% of its operating profit.

A symbol of capitalism and a new era

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

McDonald’s is the first american fast food restaurant to open in the Soviet Union, which collapsed in 1991.

McDonald’s decision to leave the country coincided with other American food and beverage giants, such as Coca-Cola, Pepsi and Starbucks, stopped or closed its operations in Russia because of Western sanctions.

McDonald’s said it expects to record a charge against revenues of between $ 1.2 billion and $ 1.4 billion for the departure to Russia. Its restaurants in Ukraine are closed, but the company says it continues to pay the full salaries of its employees there.

McDonald’s has more than 39,000 locations in more than 100 countries. Most are owned by franchises, and only 5% are owned by the company.

McDonald’s said the exit from Russia would not change its forecast to add 1,300 net restaurants this year, which would contribute 1.5% to sales growth across the company.

Last month, McDonald’s reported that it had earned $ 1.1 billion in the first quarter, compared to more than 1,500 million last year. Revenue was nearly $ 5.7 billion.

A wave of departure that never stops

Everything from British energy giants Shell and BP to French carmaker Renault have already left Russia, facing a severe blow to their bottom lines as they seek to sell their assets in the country. Other companies have remained, at least partially, and they shrug in the face.

Renault said in a statement that it had ceded the majority of its stake (67.69%) in AvtoVAZ, the largest Lada carmaker in Russia, to NAMI, the Russian Institute for Research and Development of Automobiles and Motors.

Thanks to AvtoVAZ, Russia was the second largest market for the Renault Group last year, behind Europe, with nearly half a million vehicles sold.

Financial details were not disclosed, but Russia’s Minister of Industry and Trade Denis Manturov said in April that Renault planned to sell its assets in Russia for “a symbolic ruble”.

“Agreements have been signed on the transfer of the Russian assets of the Renault Group to the Russian Federation and the government to Moscow,” the ministry said in a statement.

The French car group also provided Renault’s operations in Russia, including the plant near the capital that produces Renault and Nissan vehicles, in the city of Moscow.

That was announced by Mayor Sergei Sobyanin the factory will re -launch the Soviet brand Moskvich.

Renault’s management has already announced that it will include in its accounts for the first half the charge of 2.2 billion euros (about 2.3 billion dollars) as a result of this sale.

Source: AFP and AP