McDonald’s to temporarily close all restaurants in Russia

McDonald's will temporarily close all of its restaurants in Russia and suspend other operations in the country, joining a growing list of western brands to rethink their presence after the invasion of Ukraine.

The opening of the first McDonald's in Moscow in January 1990 was seen as a sign of the end of the Soviet Union.

Russia and Ukraine made up about 9% of the group's revenues last year. They contributed less than 3 per cent of operating income because wholly-owned restaurants are less profitable than its franchised operations.

Chris Kempczinski, chief executive, told employees and franchisees that it was impossible to predict when McDonald's would be able to reopen its Russian locations. The company was experiencing supply chain disruptions as a result of the conflict and would continue to monitor the situation in the region.

McDonald's shut down its restaurants in Ukraine.

McDonald's is the latest company to put its business in Russia on hold, but the Golden Arches were a symbol of the post-Soviet era.

Levi's, whose blue jeans were coveted on the black market in Soviet Russia, also said it would suspend commercial operations in Russia.

Kempczinski said in his letter that the situation was "extraordinarily challenging" for a global brand such as McDonald's.

For 66 years, we have operated with the belief that communities are made better when there is a McDonald's nearby.

Kempczinski said that our values mean we cannot ignore the needless human suffering unfolding in Ukraine.

He said that McDonald's would continue to pay its employees in Russia.

Consumer brands have differed in their response to Russia's invasion of Ukraine as they struggle to respond to pressure from western employees, consumers and investors while doing the right thing by their Russian workers and customers.

Starbucks is still operating in Russia. The owner of Pizza Hut and Kentucky Fried Chicken said it will pause investment in new restaurants in the country while it looks at possible changes.

McDonald's and other companies were urged to pull out of Russia by the New York State Common Retirement Fund.

Additional reporting by Polina.