McDonald's is likely to take a big financial hit because of closures in Russia. The burger giant said it will continue paying its 62,000 employees in the country.
DETROIT — McDonald’s, Starbucks and General Electric -- ubiquitous global brands and symbols of U.S. corporate might -- all announced Tuesday they were temporarily suspending their business in Russia in response to the country’s invasion of Ukraine.
Last Friday, Starbucks had said that it was donating profits from its 130 Russian stores -- owned and operated by Kuwait-based franchisee Alshaya Group -- to humanitarian relief efforts in Ukraine. But on Tuesday, the company changed course and said it would temporarily close those stores. Alshaya Group will continue to pay Starbucks’ 2,000 Russian employees, Starbucks President and CEO Kevin Johnson said in an open letter to employees.
General Electric also said in a Twitter post that it was suspending its operations in Russia. GE said two exceptions would be essential medical equipment and support for existing power services in Russia. 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. Burger King said it is redirecting the profits from its 800 Russian stores to relief efforts and donating $2 million in food vouchers to Ukrainian refugees.