McDonald’s and U.S. companies under pressure to quit business in Russia
Johnson stated that Starbucks had already donated $500,000 to the “World Central Kitchen” and the Red Cross for humanitarian relief efforts in Ukraine.
McDonald’s first Russian fast-food outlet opened 32 years ago, when the Soviet Union was still in existence. Today, there are 847 outlets in Russia and 108 across Ukraine.
According to the company , these restaurants account for 2% of McDonald’s sales and about 9% of its revenue. They also contribute 3% of McDonald’s operating income,.
The reason the fast-food chain is reluctant to talk publicly about the invasion could be that only 16% of Russian restaurants are owned and operated directly by Russians, and that all restaurants in Ukraine are managed by the company.
“In 2014 after Russia was hit by sanctions in response to the Crimea invasion, there was an perceived negative reaction at country level against American businesses, including McDonald’s, whose Moscow outlets it closed for’sanitary violations.'” Sara Senatore, a Bank of America Securities Analyst, wrote Monday in a note to clients. This was obtained from CNBC.
Yum Brands has over 1,000 restaurants in Russia. Its chains include KFC and Taco Bell. Yum stated that, “Like many people around the globe, we are shocked by the tragic events occurring in Ukraine and we’re focused to the safety of our employees and franchisees” in a statement to CNBC.
Yum Brands’ Russian franchises are run by local operators. This means that the majority of Yum Brands’ sales comes from licensing fees.
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