McDonald’s has announced a strategic exit from Russia after more than three decades of operation, a move that will impact its extensive network of restaurants. The company plans to transfer ownership of its 850 outlets to a local buyer as it completes the withdrawal, a process accompanied by a phased financial settlement projected between 1.2 and 1.4 billion dollars. This figure reflects the value of the existing business assets and contracts that will be transitioned under new ownership, as disclosed by the corporation.
Earlier in March, amid the ongoing conflict in Ukraine, McDonald’s confirmed the temporary closure of its Russia locations. The decision paused operations at the 850 restaurants and halted activity across a workforce of roughly 62,000 employees, with the aim of preserving safety and stability during the volatile period.
Ultimately the company has decided to depart Russia entirely. The humanitarian toll of the war, coupled with an unpredictable operating environment, underscored the conclusion that continuing business in Russia is incompatible with McDonald’s values and long-term mission. This stance aligns with a broader emphasis on ethical standards and corporate responsibility that guide the company’s global actions, even when results involve difficult tradeoffs.
As part of the exit, McDonald’s is moving to sell its full portfolio of Russian restaurants to a local buyer. The transition will be managed to ensure a orderly handover and to address regulatory and logistical considerations that accompany such a sale, including franchise arrangements and property transfers all within local legal frameworks.
In handling the withdrawal, McDonald’s priorities include safeguarding the livelihoods of its Russian employees. The company has indicated a commitment to ensuring that staff continue to receive salaries and have potential employment opportunities with any eventual buyer, up to and including the closing of the sale. This approach reflects a concern for continuity and the welfare of workers during the transition period.
Chris Kempczinski, chairman and chief executive officer of McDonald’s, expressed appreciation for the company’s 62,000 restaurant employees as well as the support provided by Russian suppliers and local partners. He acknowledged the difficulty of the announcement given the dedication and loyalty shown by the team. Kempczinski also reaffirmed McDonald’s commitment to its global community and to upholding the company’s core values during a time of significant change, noting that the decision is driven by the need to align actions with stated corporate principles and long-term objectives.