Business Maverick: McDonald’s, Coca-Cola Hit Pause on Russia Amid Rising Backlash

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McDonald’s Corp., Coca-Cola Co. and Starbucks Corp. are temporarily halting business operations in Russia amid an intensifying backlash since the invasion of Ukraine started nearly two weeks ago.

The iconic U.S. brands, seen around the world as the face of U.S. capitalism, announced their decisions in a flurry of announcements on Tuesday afternoon, joining hundreds of other global companies that have halted work in Russia since the war began. PepsiCo Inc. said it would suspend soft drink sales in Russia but would continue to sell daily essentials such as milk and baby formula.

“What you’re seeing is a confluence here. Now it makes business sense,” said Grabowski, who has more than 30 years of crisis-management experience. “Now there’s a business argument as well as an argument of conscience.” Amazon.com Inc.’s cloud-computing unit announced it will stop accepting new customers in Russia or Belarus, according to a company blog post. The companyits Amazon Web Services unit had “no data centers, infrastructure or offices in Russia, and we have a long-standing policy of not doing business with the Russian government. We have also stopped allowing new sign-ups for AWS in Russia and Belarus.”to Russia, joining peers Swatch Group and Richemont.

Cowen Inc. analyst Andrew Charles said last week that the exposure to Russia and Ukraine is “immaterial” to McDonald’s even though it represents about 9% of the company’s revenue. That’s because the countries account for less than 3% of operating profit, or $311 million of the $10.4 billion in operating profit that McDonald’s reported last year.

 

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This can look good but if the war last longer it can push some Rasians to start alternative business and after the war they found they no longer have market

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