Stories explained

McDonald's 2022 Russia exit: a sale and a brand withdrawal

The May 16, 2022 announcement moved beyond temporary restaurant closures to a planned sale of the Russian business and removal of McDonald's branding.

An original NewsCubby historical explainer. Event dates appear in the article; this is not a breaking-news announcement.

The decision announced in May

McDonald's announced on May 16, 2022 that it would exit Russia after more than 30 years of operations and begin selling its business there. It distinguished this decision from the temporary closure and pause announced on March 8. The company cited the humanitarian crisis caused by the war in Ukraine and the unpredictable operating environment.

The proposed sale included removing the McDonald's name, logo and branding from the restaurants. That is different from saying the physical buildings, restaurant jobs or food-service activity would all disappear. A brand leaving a market and a local business continuing under different ownership can be separate outcomes.

Source [1]

Employment and accounting were part of the plan

The company said it wanted future employment for Russian employees included in the sale terms. It also expected a largely non-cash accounting charge of roughly $1.2–1.4 billion. An expected charge is not a disclosed sale price. This dated announcement establishes what McDonald's planned at that stage; it should not be used to invent the buyer's later results or treat an accounting estimate as cash paid to an owner.

Source [1]

Sources and further reading

  1. McDonald's — To exit from Russia, May 16, 2022 ↗