McDonald's shuts down $2.75 billion worth of stores in Russia, Ukraine

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McDonald's shuts down $2.75 billion worth of stores in Russia, Ukraine
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The fast-food giant says it 'cannot ignore the needless human suffering' which is unfolding in Ukraine. 9News

The burger giant said it will continue paying its 62,000 employees in Russia "who have poured their heart and soul into our McDonald's brand." But in an open letter to employees, McDonald's President and CEO Chris Kempczinski said closing those stores for now is the right thing to do.

"The situation is extraordinarily challenging for a global brand like ours, and there are many considerations," Mr Kempczinski wrote in the letter. McDonald's works with hundreds of Russian suppliers, for example, and serves millions of customers each day. McDonald's could take a big financial hit because of the closures. In a recent regulatory filing, the Chicago-based company said its restaurants in Russia and Ukraine contributed nine per cent of its annual revenue, or around US$2 billion .Unlike other big fast food brands in Russia that are owned by franchisees - including KFC, Pizza Hut, Starbucks and Burger King - McDonald's owns 84 per cent of its Russian locations.

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