NO MORE HAPPY MEALS FOR YOU! Exit Russia for Fast Food Chain Symbolizing American Capitalism

Intro: Chief executive Chris Kempczinski said the decision to leave was “extremely difficult” but necessary as the company’s “steadfast” commitment to its values and the global community “means we can no longer keep the Arches shining” in Russia.

> As part of the exit, McDonald’s said it will start the “de-Arching” process, company lingo for the removal of the McDonald’s logo, name, branding and menu from restaurants, though it said it will retain its trademarks in Russia.

McDonald’s Says It’s Exiting Russia After More Than 30 Years

Robert Hart Forbes Staff 

Forbes | 2022-05-16

"Fast food giant McDonald’s on Monday said it is looking to sell its Russian business and leave the market entirely as Moscow’s invasion of Ukraine makes its continued presence untenable, a major symbolic departure for a chain symbolizing American capitalism and the end of more than three decades of business.

McDonald’s said it would temporarily close its 847 Russian restaurants in early March, around two weeks after Russia launched its invasion. It faced heavy criticism and threats of boycotts for continuing to operate in Russia as an increasing number of Western companies pulled out.

McDonald’s exit from Russia is significant, marking not only the departure of an industry titan but of a potent emblem of Western money, power and influence spreading across the world. . .McDonald’s is one of several recognizable international brands questioning their continued operations in Russia after its invasion of Ukraine and one of the first to announce it is selling up and leaving entirely. . .

$1.2-$1.4 billion. That’s how much the exit from Russia will cost the fast food giant, McDonald’s said. This is mostly a non-cash write off for its investments."

Reference: https://www.forbes.com/sites/roberthart/2022/05/16/mcdonalds-says-its-exiting-russia-after-more-than-30-years/ 

Further Reading

Renault’s Russian Assets Nationalized After Carmaker Sells To Moscow (Forbes)

McDonald’s Shuts 800 Restaurants In Russia Over Ukraine Invasion (Forbes)

McDonald’s in Russia: departure is about a lot more than burgers (Guardian)