odanny
Diamond Member
They own 84% of the 850 stores, so when they close, they not only lay off 62,000 employees, they lose a large part of their international sales. Shareholders take the hit. But they stood up and did the right thing anyway. Good on McDonald's.
But McDonald's was also in a unique position to cut its ties, however temporarily. Unlike many fast-food chains whose international units are operated by franchisees, McDonald's owns 84% of its restaurants in Russia. As an industry expert told The Washington Post, McDonald's made a seismic corporate shift with its decision to place humanitarian concerns above shareholder profits. According to a corporate filing, McDonald's restaurants in Ukraine and Russian accounted for 9% of the company's 2021 revenue, because the chain owns so many of the outlets.
The price of McDonald's shares has been steadily dropping since the Russian invasion began on Feb. 24.
But in making its decision, McDonald's also had to do something more than forgo profits: It had to sever ties with communities that it has served for decades - and with supply chains that it had created, virtually out of thin air. In a matter of days, an unprovoked war wiped out, for an unknown period of time, what it took McDonald's more than 30 years to build.
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But McDonald's was also in a unique position to cut its ties, however temporarily. Unlike many fast-food chains whose international units are operated by franchisees, McDonald's owns 84% of its restaurants in Russia. As an industry expert told The Washington Post, McDonald's made a seismic corporate shift with its decision to place humanitarian concerns above shareholder profits. According to a corporate filing, McDonald's restaurants in Ukraine and Russian accounted for 9% of the company's 2021 revenue, because the chain owns so many of the outlets.
The price of McDonald's shares has been steadily dropping since the Russian invasion began on Feb. 24.
But in making its decision, McDonald's also had to do something more than forgo profits: It had to sever ties with communities that it has served for decades - and with supply chains that it had created, virtually out of thin air. In a matter of days, an unprovoked war wiped out, for an unknown period of time, what it took McDonald's more than 30 years to build.
McDonald's didn't just close 850 restaurants in Russia - it froze a whole 30-year investment
On its Instagram account, McDonald's Russia doesn't peddle celebrity menu collaborations, clever cultural memes or corporate-branded swag, as does its counterpart in the United States. Mickey D's in Russia takes a different approach to cultivating customer relationships: It gives them video...
