Face to face boycott calls and a plea from a large investorMcDonald’s said on Tuesday it would temporarily close its 850 restaurants in Russia due to the country’s invasion. Ukraine.
“[O]Our values mean that we cannot ignore the unnecessary human suffering that is unfolding in Ukraine, “said McDonald’s CEO Chris Kempczinski in an open letter to employees of the company shared with CBS MoneyWatch. came to condemn Russia for the attack.
The world’s largest fast food chain said it would continue to pay its 62,000 employees in Russia. Ronald McDonald House Charities, the philanthropic arm of the company, now operates in Poland on the border with Ukraine to provide medical care and humanitarian aid to refugees fleeing the fighting. The Ukrainian chapter of the group distributes medical supplies and offers help to all of Ukraine, McDonald’s said.
More than 2 million people have fled Ukraine since the invasion of the country by Russia, according to the United Nations.
Although a lot of companies have closed their operations in Russia as the Ukraine crisis heats up, McDonald’s has continued its regular business in the country. first entered in 1990three months after the fall of the Berlin Wall.
Unlike other big fast food brands in Russia that are owned by franchisees, such as Burger King, KFC and Pizza Hut, McDonald’s owns 84% of its Russian locations. According to the McDonald’s investment website, Russia accounts for 9% of the company’s annual revenue, or about $ 2 billion.
Pressure from a large investor
McDonald’s decision follows a petition from the New York State Pension Fund, with assets estimated at $ 280 billion under management at the end of 2021.
“Stopping or ending McDonald’s business operations in Russia would address a number of investment risks associated with the Russian market and would 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 Kempczinski on Friday.
Animators and companies condemn Russia’s actions
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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. It had included McDonald’s and Pepsi among the 32 companies remaining in Russia with significant exposure.
The inaction sparked boycott calls 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. . he tweeted.
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