Despite the fact that a number of Russian companies have closed down operations, McDonald’s continues to sell Big Macs in Moscow.
McDonald’s Russia is being pressured by a major investor to close its 847 Russian restaurants. This is New York State’s Pension Fund, which has an estimated $280 Billion in assets under administration as of the 2021 end.
“Pausing, or ending McDonald’s Russian business operations would address many investment risks and play an important part in condemning Russia’s involvement in fundamentally undermining international order that is vital for a strong and healthy global economic system,” Thomas DiNapoli, the state comptroller, stated Friday in a letter addressed to Christoper Kempczinski (McDonald’s CEO).
Jeffrey Sonnenfeld, Yale University’s management professor, has compiled a list of more than 200 U.S.- and foreign companies that have reduced their operations in Russia. He listed McDonald’s, Pepsi among the 32 companies with significant exposure in Russia.
According to the investment page of the Chicago-based company 84% of McDonald’s Russian restaurants are owned by them. Russia accounts for 9% of total company revenues. Three months after the fall the Berlin Wall, the company opened its first store in Russia.
A spokesperson for CBS MoneyWatch told CBS MoneyWatch that the Office of New York State Comptroller has also asked PepsiCo and eight other companies to cease business in Russia. The spokesperson said that none of the companies had yet responded.
In an email statement, DiNapoli stated that companies like McDonald’s or PepsiCo need to evaluate whether doing business with Russia in this extremely volatile time is worth it. We encourage companies that we invest in to conduct a risk analysis to determine what is best for their shareholders and company.
CBS MoneyWatch sent emails to PepsiCo and McDonald’s asking for comment about whether they intend to operate in Russia.
PepsiCo and McDonald’s were indifferent to the calls for a boycott on social media.
“I don’t love it.” One person stated that @McDonalds continues to do business in Russia as usual, which means that the corporate and sales taxes it pays there DIRECTLY SUPPORT Putin’s illegal and brutal war in Ukraine.
Other fast-food and beverage chains are also attracting attention online like Burger King, Starbucks, Coca-Cola and Yum Brands, which own KFC.
