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"De-arching Russia" after 30 years

Updated: Aug 28, 2022

By Chahat Gupta


McDonald's, which entered the USSR in 1990 to showcase the easing tensions after the Cold War, said that it will sell all its 850 restaurants to a local buyer and permanently depart from Russia after 30 years. The company will "de-arch" the restaurants by removing its name, logo, branding, and menu but retaining its trademark. It will ensure future employment for its 62,000 employees with potential future buyers.


CEO Chris Kempczinski said that the humanitarian crisis caused by the War was inconsistent with McDonald's values and commitments to the global community. McDonald's will sign off a charge of $1.4 billion to cover the investment.


Russia and Ukraine formed 9% of McDonald's global sales and 3% of operating income. Further, international brands like Starbucks and Coca-Cola have either suspended sales or departed from the country entirely.

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