McDonald’s said Tuesday it is temporarily closing all of its 850 restaurants in Russia in response to the country's invasion of Ukraine.
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 Kempckinski said closing those stores for now is the right thing to do.
McDonald’s has also temporarily closed 108 restaurants in Ukraine and continues to pay those employees.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 9% of its annual revenue, or around $2 billion.
Yum Brands, the parent company of KFC and Pizza Hut, said Monday that it is donating all of the profits from its 1,050 restaurants in Russia to humanitarian efforts. It has also suspended new restaurant development in the country. Starbucks has said it is also donating profits from its 130 Russian stores to humanitarian efforts.
Last week, New York State Comptroller Thomas DiNapoli __ a trustee of the state's pension fund, which is a McDonald's investor __ sent a letter to McDonald's urging it to consider pausing its operations in Russia.