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McDonald’s to Exit from Russia

corporate.mcdonalds.com

71–80 of 394 posts

Re: McDonald’s to Exit from Russia

#71

> The Company intends to initiate the process of “de-Arching” those restaurants, which entails no longer using the McDonald’s name, logo, branding, and menu, though the Company will continue to retain its trademarks in Russia. Obviously they'd want to keep the trademark, otherwise they have no way to prevent those sold restaurants from "re-Arching" after the "de-Arching" :)

Good luck enforcing the trademark :)

Re: McDonald’s to Exit from Russia

#72
post #36

Earlier quoted context omitted.

I don't think McDonalds & Co are such a big health-negative in other countries as it is in the US. I've never met someone who's obese from eating Maccas in Sweden, they're obese because they eat more calories than they burn. Calling a food unhealty is quite silly to me, anything is unhealty if you consume it in unhealty amounts. The above statements obviously exclude things like cyanide and other things designed to k…

This is victim-blaming, don't you think?

You're opening for me to go off-topic and talk about drug abuse here. And my opinion is that the user is at fault for consuming unhealthy amounts of X, but that we as society should help out. (See the resemblance?) (Also note that society might have failed people and led them to abuse too, but the final decision is made by the person either way).

But closing the door for people who don't have issues with self-restraint feels like collective punishment. (Not that Maccas are in the wrong here, they can open and close restaurants wherever they want, I don't mind.)

Re: McDonald’s to Exit from Russia

#73

I would keep the business open, add a 20% Ukraine war fee to all sales (call it special operation fee if needed), and give it to a Ukraine war relief fund.

and have your windows smashed daily. You underestimate the power of propaganda and how people think in Russia in regards to this war.

Re: McDonald’s to Exit from Russia

#74
post #40
post #29

Something that has been bugging me for some time (genuine question, please forgive me lack of geopolitics/economy understanding) is this: Supposing we want to hurt Russian economy - how are we hurting it by stopping selling them licenses/branding/machines to make and sell burgers and fries? Are we not ripping them off money if we sell to them? As in: we gain, they lose? I understand we don't want to sell advanced tec…

For a globally recognizable brand like McDonald's, the move to leave the country has a symbolic meaning. It sends a message to the Russian people that something is deeply wrong with the direction taken by their government. Of course, some Russians will interpret the move differently, but that cannot be avoided.

I don't think this is the reasoning at all.

I think trying to conduct transactions in a heavily sanctioned nation that's also fighting a war of aggression against a neighbor, and incurring heavy losses, is causing a headache for the bean counters, and it has finally become more trouble than it's worth, financially.

These enormous multinational behemoths - as an entity - don't give two shits about the people dying in Ukraine, Russian soldiers dying, or the Russian people enduring hardships. They care about profit.

It's no different than the stance on civil rights, or LGBQT+, or any other issue. If you look historically, these companies only bother to "do the right thing" once it has the potential of threatening profits. It may sound cynical, but the historical record is pretty solid.

Re: McDonald’s to Exit from Russia

#76
post #33

Russian propaganda will use this news as a tool they already say “we don’t need McDonalds”

No country NEEDS McDonald's.

the difference is that for 30 years since McDonalds is in Russia, nobody said “We don’t need McDonalds”

they only left after the “special operation” started, but the propaganda will try to shift the blame and tell “whatever, we don’t need McDonalds anyways”

next thing you know: “we dont’t need bread, we don’t need bananas, we don’t need water, German cars are for fashists”, etc.

Re: McDonald’s to Exit from Russia

#77
I remember the evening news on TV when the first McDonald's restaurant opened in 1990 at Pushkin Square. There was a huge crowd of Russians outside, wanting to try the burger.

It was a sign of a more open world, something resembling an end of the cold war. There was a sense of optimism in the West about a peaceful future with Russia.

It does not matter that McD itself is closing in Russia, but it does tell us something about what the political and security-climate has reverted to.

Re: McDonald’s to Exit from Russia

#79

Earlier quoted context omitted.

MCD will be back once the war or situation stabilizes. Russia is a large economy that any global company would want to be a part of.

> Russia is a large economy that any global company would want to be a part of When companies jump the ship this soon, makes you wonder how big of an economy Russia actually is.

those companies will be replaced by Chinese equivalents before the sun goes down.

Re: McDonald’s to Exit from Russia

#80

Can you sell the Russian business without violating the sanctions?

I'm not sure who downvoted you. It is a good question. McDonald's and other consumer goods type companies are not sanctioned, so the company can sell its assets. For that matter they could continue to operate as normal in Russia if they choose.

I'm not sure they really could easily continue to operate as normal. Their business units in Russia get paid by consumers in rubles, but due to the financial sanctions, they can no longer convert rubles to US dollars [1]. From the point of view of their non-Russian shareholders, this effectively means all that money is inaccessible. This would result in complications in reporting the revenue on their income statement. Plausibly (I am not an expert), this would mean they can't even recognize the revenue at all. At minimum, it becomes an open question whether or not the revenue will ever benefit the corporation or if it will be 'trapped' perpetually.

[1] This is my understanding. If someone knows better, please post. One source that goes into some detail about the current situation is: https://www.washingtonpost.com/business/energy/how-war-and-s...

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