McDonald’s and PepsiCo still open for business in Russia

The invasion of Russia Ukraine it doesn’t stop McDonald’s from selling Big Mac in Moscow. While a lot of companies have closed operations in Russiathe world’s largest fast food chain has so far continued its regular business in the country despite the escalation of the conflict.

A major investor: the New York State Pension Fund, with assets estimated at $ 280 billion under management at the end of 2021, is urging McDonald’s to disconnect its 847 restaurants in Russia.

“Stopping or ending McDonald’s business operations in Russia would address various investment risks associated with the Russian market and play an important role in condemning Russia’s role in fundamentally undermining the international order that is vital to a strong and healthy global economy, “said State Comptroller Thomas DiNapoli. he stated in a letter to McDonald’s CEO Christoper Kempczinski on Friday.

More than 200 U.S. and foreign companies have downsized their operations in Russia so far, according to a count by Jeffrey Sonnenfeld, a professor of management at Yale University. He lists McDonald’s and Pepsi among the 32 remaining companies in Russia with a major exposure.

According to its investment website, 84% of McDonald’s restaurants in Russia are owned by the Chicago-based company, and Russia accounts for 9% of the company’s total revenue. The company opened its first outlet in Russia on January 31, 1990three months after the fall of the Berlin Wall.

The New York State Comptroller’s Office is also asking the PepsiCo beverage and snack conglomerate, as well as eight other companies, to suspend business in Russia, a CBS MoneyWatch spokesman said in an email. None of the companies have responded yet, the spokesman added.

“Companies like McDonald’s and PepsiCo, which have a large presence in Russia, need to consider whether doing business in Russia is worth the risk during this extraordinarily volatile time,” DiNapoli said in an email. “We are encouraging companies to invest in risk analysis and determining what is in the best interests of their company and its shareholders.”

Neither McDonald’s nor PepsiCo responded to CBS MoneyWatch emails asking for comments on whether they plan to continue operating in Russia.

The inaction of McDonald’s and PepsiCo spurred calls for a boycott of both companies on social media.

“I don’t love it. @McDonalds continues to do business normally in Russia, which means that the corporate and sales taxes he pays there DIRECTLY support Putin’s illegal and murderous war in Ukraine,” one person said. .

Other fast food chains and beverage companies are also causing a fire on lineincluding Burger King, Coca-Cola, Starbucks and KFC owner Yum Brands.