McDonald's, Renault exit Russian market

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Both companies are reacting to Russia's invasion of Ukraine.

, an American fast-food giant, announced Monday it will sell its Russian business and exit the market entirely.This development came months after the company announced a temporary closing of its restaurants in the country.

“As part of McDonald’s decision to exit, the Company is pursuing the sale of its entire portfolio of McDonald’s restaurants in Russia to a local buyer,” it said. Chris Kempczinski, McDonald’s president and chief executive officer, said in the statement, “We have a long history of establishing deep, local roots wherever the Arches shine. We’re exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees.

As a result of its exit from Russia, the company said it expects to record a charge, which is primarily non-cash, of approximately $1.2-1.4 billion to write off its net investment in the market and recognize significant foreign currency translation losses previously recorded in shareholders’ equity.

 

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