McDonald’s and PepsiCo continue to operate in Russia

Russia’s invasion of Ukraine does not stop McDonald’s from selling Big Macs in Moscow. While many companies have ceased operations in Russia, the world’s largest fast food restaurant chain has so far continued to operate in the country as usual, despite the escalation of the conflict.

Big Investor: The New York State Pension Fund, which has $280 billion in assets under management at the end of 2021, is urging McDonald’s to close its 847 restaurants in Russia.

“Suspension or termination of McDonald’s operations in Russia will remove various investment risks associated with the Russian market and will play an important role in denouncing Russia’s role in fundamentally undermining the international order that is vital to a strong and healthy global economy,” said State Comptroller Thomas DiNapoli. This is stated in a letter from McDonald’s CEO Chrisoper Kempchinski on Friday.

According to current estimates by Jeffrey Sonnenfeld, a professor of management at Yale University, more than 200 American and foreign companies have curtailed their activities in Russia. He names McDonald’s and Pepsi among 32 companies that remain in Russia at significant risk.

According to the investment page, 84% of McDonald’s restaurants in Russia are owned by the Chicago-based company, with Russia accounting for 9% of the company’s total revenue. The company opened its first store in Russia on January 31, 1990, three months after the fall of the Berlin Wall.

Demonstrators around the world fill the streets to protest Russia’s invasion of Ukraine 02:55

The New York State Comptroller’s Office is also calling on snack and beverage conglomerate PepsiCo, as well as eight other companies, to suspend operations in Russia, a spokesman told CBS MoneyWatch in an email. service added that none of the companies has yet responded.

“Companies like McDonald’s and PepsiCo, which have a large presence in Russia, need to consider whether doing business in Russia is worth the risk during this extremely volatile time,” DiNapoli said in an emailed statement. “We encourage companies in which we invest to conduct a risk analysis and determine what is best in the interests of their company and their shareholders.”

Neither McDonald’s nor PepsiCo responded to emails from CBS MoneyWatch asking for comment on whether they plan to continue operating in Russia.

The inactivity of McDonald’s and PepsiCo prompted calls for a boycott of both companies on social media.

“I do not like it. @McDonalds continues to do business in Russia as usual, meaning that the corporate and sales taxes it pays there DIRECTLY support Putin’s illegal and bloody war in Ukraine,” one person said.

Other fast food chains and beverage companies are also gaining attention. onlineincluding Burger King, Coca-Cola, Starbucks and KFC owner Yum Brands.

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