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McDonald’s Corp to Defer Decision on Russia until Mid-Year


Egg-NewsFollowing the invasion of Ukraine by Russia, McDonald’s Corporation along with other U.S. and E.U. corporations withdrew from the market in the aggressor nation.


Currently McDonald’s is paying company employees in accordance with an April 28th statement but is obviously reevaluating its position.  Russia and Ukraine collectively represent two percent of McDonald’s revenue.  The company must consider factors such as corporate reputation and brand image in deciding on future action.  Given that the conflict is now in its tenth week, with every likelihood of continuing hostilities, termination is extremely likely with domestic franchisees making use of new legislation to maintain operations and deprive the parent company of royalties.