McDonald’s Corp (MCD.N) said on Monday it has started a process to sell all its restaurants in Russia after more than 30 years, making it one of the biggest global brands to exit since the country’s invasion of Ukraine.
The company expects to record a non-cash charge of $1.2 billion to $1.4 billion following the sale. Last year it generated about 9%, or $2 billion, of its revenue from Russia and Ukraine.
The world’s largest burger chain had in March decided to close its 847 restaurants in the country, including the iconic Pushkin Square location in central Moscow.
The decision to sell its Russia assets, including the iconic Pushkin Square location in central Moscow, marks a major retreat by an iconic Western brand.
Once a symbol of flourishing American capitalism in the dying embers of the Soviet Union, the store was the first to be opened in the country in 1990. More than 5,000 people had attended the opening.
The company would ensure its 62,000 employees in Russia continue to be paid until the close of any transaction and they have future jobs with any potential buyer.
McDonald’s restaurants in Ukraine remain closed even as it continues to pay full salaries for its employees there.
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