The company will sell its entire portfolio of restaurants in Russia to a local buyer, with plans to retain trademarks. It said continued ownership of the Russian business "is no longer tenable, nor is it consistent with McDonald's values."
McDonald's, which paused operations in Russia early in March, is the latest company that is selling their operations in the country amid global sanctions over the Ukraine war.
"We have a commitment to our global community and must remain steadfast in our values," McDonald's Chief Executive Chris Kempczinski said. "And our commitment to our values means that we can no longer keep the Arches shining there."
McDonald's said the exit will likely result in a $1.2 billion to $1.4 billion charge, with 2022 operating margin expected to fall in the 40% range. Chief Financial Officer Kevin Ozan said on an earning conference call late last month that the company was continuing to target full-year margins in the low to mid-40% range.
McDonald's recorded $127 million of pre-tax operating expenses in the first quarter to support businesses in Russia and Ukraine.
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