McDonald’s Agrees to Sell Russian Business to Existing Licensee as Exits Country

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McDonald’s

announced Thursday it has agreed to offer its Russian business to existing licensee, Alexander Govor.

According to a push launch from

McDonald
’s
(ticker: MCD), “Under this settlement, Mr. Govor will purchase McDonald’s entire restaurant portfolio and operate the eating places beneath a new manufacturer.” Govor has served as a licensee for McDonald’s considering the fact that 2015.

“The consumer has also agreed to fund the salaries of company workforce who work in 45 areas of the nation until closing, as perfectly as fund current liabilities to suppliers, landlords and utilities,” according to the push launch. Also, the sale and obtain settlement offers personnel to be retained for at least two years on equivalent conditions.

This announcement arrives 3 times right after McDonald’s mentioned it was pulling out of Russia, about 30 many years following getting into the state.

“The humanitarian crisis induced by the war in Ukraine, and the precipitating unpredictable functioning surroundings, have led McDonald’s to conclude that ongoing possession of the business enterprise in Russia is no more time tenable, nor is it constant with McDonald’s values,” McDonald’s mentioned on Monday.

The agreement stays matter to specific situations, including regulatory acceptance. Closing is predicted to occur in the coming weeks. 

Shares of McDonald’s were being .8% decreased on Thursday to $229.17. The inventory has fallen 14.5% yr to date.

Create to Angela Palumbo at [email protected]