McDonald's Shuts Down Russian Restaurants

McDonald’s Corp. (MCD) has announced it is shutting down its Russian restaurants.

Pixabay

What Happened: 

In an internal memo, McDonald’s CEO Chris Kempczinski acknowledged his company had 62,000 employees “who have poured their hearts and souls into our McDonald’s brand to serve their communities.” He added that during “thirty-plus years that McDonald’s has operated in Russia, we’ve become an essential part of the 850 communities in which we operate.”

Nonetheless, Kempczinski acknowledged the company could no longer “ignore the needless human suffering unfolding in Ukraine.” After consulting with Chairman Rick Hernandez and the McDonald’s board of directors, Kempczinski opted not to continue operating the company-owned restaurants in Russia.

What Happened: 

In an internal memo, McDonald’s CEO Chris Kempczinski acknowledged his company had 62,000 employees “who have poured their hearts and souls into our McDonald’s brand to serve their communities.” He added that during “thirty-plus years that McDonald’s has operated in Russia, we’ve become an essential part of the 850 communities in which we operate.”

Nonetheless, Kempczinski acknowledged the company could no longer “ignore the needless human suffering unfolding in Ukraine.” After consulting with Chairman Rick Hernandez and the McDonald’s board of directors, Kempczinski opted not to continue operating the company-owned restaurants in Russia.

Why It Happened: 

McDonald’s was among the high profile U.S. corporations that continued operating in Russia following the invasion of Ukraine. The fast-food chain was getting 9% of its revenue from the Russia/Ukraine markets, or roughly $2.3 billion.

Kempczinski admitted the company was “experiencing disruptions to our supply chain along with other operational impacts” prior to his announcement, and stressed that he has witnessed “extraordinary leadership by our Ukrainian and Russian teams.”