The burger giant said it will continue paying its 62,000 employees in Russia “who have poured their heart and soul into our McDonald’s brand.”
But in an open letter to employees, McDonald’s President and CEO Chris Kempckinski said closing those stores for now is the right thing to do.“Our values mean we cannot ignore the needless human suffering unfolding in Ukraine,” Kempczinski said.“The situation is extraordinarily challenging for a global brand like ours, and there are many considerations,” Kempczinski wrote in the letter. McDonald’s works with hundreds of Russian suppliers, for example, and serves millions of customers each day.
McDonald’s could take a big financial hit because of the closures. In a recent regulatory filing, the Chicago-based company said its restaurants in Russia and Ukraine contributed 9% of its annual revenue, or around $2 billion.With Brother's Family Torn Apart And Stranded Amid War In Ukraine, Northbrook Couple Hopes For Reunion
Yum Brands, the parent company of KFC and Pizza Hut, said Monday that it is donating all of the profits from its 1,050 restaurants in Russia to humanitarian efforts. It has also suspended new restaurant development in the country. Starbucks has said it is also donating profits from its 130 Russian stores to humanitarian efforts.
Pressure has been mounting for McDonald’s and other companies like Coca-Cola and PepsiCo that remain in Russia to pull out. Many corporations have ceased operations in the country in protest of the Ukraine invasion. Among them is consumer goods conglomerate Unilever, which on Tuesday said it has suspended all imports and exports of its products into and out of Russia, and that it will not invest any further capital into the country.
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