McDonald’s era in Russia is coming to an end, restaurants are selling out

McDonald’s announced on Thursday that it has begun the process of selling its Russian business to one of its licensees in the country.

McDonald’s has begun the process of selling its restaurants to Russia after more than 30 years in the country.

The Chicago burger giant said its existing licensee Alexander Govor, which operates 25 restaurants in Siberia, has agreed to buy McDonald’s 850 Russian restaurants and operate them under a new name. McDonald’s did not disclose the sale price.

But McDonald’s temporarily closed its Russian locations in March due to Russia’s invasion of Ukraine, a move the company said cost it $55 million a month. On Monday, McDonald’s announced that it would sell those stores and leave Russia.

The sale agreement is subject to regulatory approval and is expected to close within weeks, McDonald’s said.

Govor, laid off since 2015, also agreed to keep McDonald’s 62,000 Russian employees for at least two years on equivalent terms. Govor also agreed to pay the salaries of McDonald’s employees until the sale closes.

McDonald’s has left open the possibility that he could one day return to Russia.

“It’s impossible to predict what the future holds, but I choose to end my message with the same spirit that brought McDonald’s to Russia: hope,” CEO Chris Kempczinski wrote in a letter to employees Monday. “So let’s not end by saying ‘goodbye’. Instead, let’s say it like they do in Russian: until we meet again. »

McDonald’s shares were flat in morning trading on Monday.

ABC News

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