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McDonald’s introduced Tuesday it would briefly shut 850 places in Russia, almost two weeks after Russian forces invaded Ukraine.
CEO Chris Kempczinski wrote in a letter to franchisees and workers that the chain will pause all operations in Russia. Nonetheless, it would proceed to pay its 62,000 Russian workers, and its Ronald McDonald Home Charities will proceed to function.
In current days, the fast-food big has drawn criticism for staying silent on the conflict, given its comparatively massive Russian footprint. McDonald’s eating places in Russia and Ukraine account for two% of its systemwide gross sales, roughly 9% of its income and three% of its working revenue.
McDonald’s has lengthy performed a symbolic position in Russia as properly. The chain opened its first location within the Soviet Union 32 years in the past in Moscow, months earlier than the state collapsed.
About 84% of McDonald’s Russian places are owned by the corporate, whereas the remainder are operated by franchisees. Proudly owning extra of its eating places generates larger income for the corporate, however opens it as much as larger danger in occasions of turmoil or financial downturn.
McDonald’s announcement comes after Yum Manufacturers stated it might droop restaurant growth and funding in Russia.
That is breaking information. Please test again for updates.
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