McDonald’s joins brand names exiting Russian market

Russia was hit by a wave of brand name boycotts today after a myriad of big name companies withdrew their presence from Russia in protest of its invasion of Ukraine.

The move followed Ukraine foreign minister Dmytro Kuleba’s appeal on CNN that “all Western companies must withdraw from Russia.”

Fast Food Withdrawals From Russia

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Fast food companies McDonald’s, KFC, and Pizza Hut declared a halt on their operations in Russia, with McDonald’s temporarily closing down its 850 outlets.

McDonald’s confirmed that it would still pay its 62,000 staff members despite the operational shutdown.

KFC and Pizza Hut parent company Yum!, is set to shut down its 50 Pizza Hut restaurants and 70 KFC locations across the country in protest.

Yum! saw a 1% rise in shares during Wednesday afternoon trades, alongside a 0.7% increase in McDonald shares, despite the company shutdowns across the country.

Drink Brands Join The Boycott

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Several popular drinks brands have withdrawn from Russia, including PepsiCo, Coca-Cola, Starbucks and Heineken.

Coca-Cola and PepsiCo have withdrawn from Russia, but PepsiCo have committed to supporting its 20,000 Russian associates and the 40,000 agricultural workers in the company supply chain.

PepsiCo is still supplying certain goods like baby food and formula as it’s a daily use product.

Starbucks confirmed it would stop all business in the country and halt all shipments of its products into Russia.

Heineken suspended its production and investments, alongside all exports scheduled to Russia.

PepsiCo’s share price dipped 0.8% in Wednesday afternoon trading, whilst a 0.1% rise in Coca-Cola shares, a spike of 6% for Heineken and a 3.6% increase for Starbucks.

How Many Companies Have Withdrawn From Russia?

A current total of over 300 companies have suspended their operations in Russia as boycotts and sanctions continue to pummel the country.

Other notable companies scheduled to exit Russia include Unilever, Netflix, Ikea and Levi’s.

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