Burger King halts corporate support for its 800-plus franchised locations in Russia

1 min


179
118 shares, 179 points

A man holds meals from the Burger King restaurant on May, 15, 2020 in Dedovsk, Russia.

Mikhail Svetlov | Getty Images

Burger King announced Thursday it has halted corporate support for its 800-plus franchised restaurants in Russia.

The Restaurant Brands International chain said it will refuse approvals for any investment or expansion. The suspension also includes pausing operations, marketing and its supply chain.

Burger King’s announcement comes after a flurry of other U.S. fast-food chains — including its rival McDonald’s — suspended their corporate support to their Russian locations earlier this week as the Kremlin’s forces continued attacks on Ukraine.

McDonald’s has the largest exposure to Russia since the majority of its restaurants there are owned by the company. CFO Kevin Ozan said Wednesday that the company is currently estimating that temporarily shuttering its Russian locations and pausing operations will cost it $50 million per month.

Other U.S. restaurant companies won’t be as hurt by their symbolic step backs. Restaurant Brands, for example, receives less than 1% of its total revenue from Russia, according to FactSet. Starbucks, Yum Brands and Papa John’s have all announced plans to pause Russian operations, but most of those chains’ locations in the country are run by local franchisees.

Restaurant Brands had previously committed to redirect any profits from Russian-franchised locations to humanitarian aid for Ukrainian refugees.

Source: CNBC


Like it? Share with your friends!

179
118 shares, 179 points

What's Your Reaction?

Cute Cute
8
Cute
Fun Fun
26
Fun
Hate Hate
21
Hate
Confused Confused
10
Confused
Fail Fail
2
Fail
Geeky Geeky
24
Geeky
Love Love
16
Love
OMG OMG
10
OMG
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format