In response to Russia’s invasion of Ukraine, McDonald’s has announced that all of its 850 restaurants in the country will be temporarily closed.
The burger behemoth announced that it will continue to pay its 62,000 Russian employees “who have poured their heart and energy into our McDonald’s brand.” However, in an open letter to staff, McDonald’s president and CEO Chris Kempckinski stated that closing those locations is the best course of action for the time being.
“We cannot disregard the terrible human tragedy happening in Ukraine because of our beliefs,” Kempczinski stated.
It’s impossible to say when the company will be able to reopen its locations, according to Kempczinski.
McDonald’s has also temporarily closed 100 restaurants in Ukraine, but the employees are still being paid.
McDonald’s may suffer a significant financial loss as a result of the closures. The Chicago-based firm stated in a recent regulatory filing that its restaurants in Russia and Ukraine provided 9% of its yearly revenue, or roughly $2 billion.
Unlike other major fast-food chains with franchisees in Russia, such as KFC, Pizza Hut, and Burger King, McDonald’s owns 84 percent of its outlets.
McDonald’s and other corporations that remain in Russia, such as Coca-Cola and PepsiCo, have been under increasing pressure to leave. In response to the invasion of Ukraine, many businesses have halted operations in the country.