March 28, 2022
March 27, 2022
March 25, 2022
March 23, 2022
March 22, 2022
March 19, 2022
Russia invaded Ukraine on February 24. American companies scrambled to react. On March 8, McDonald's announced all stores in Russia and Ukraine would be "temporarily" closed. The announcement included language such as, "At the same time, our values mean we cannot ignore the needless human suffering unfolding in Ukraine. " and " We will also closely monitor the humanitarian situation."
Vladimir Putin expected the Ukrainian takeover to take a few days. McDonald's management was probably thinking in weeks or months.
Twelve days ago, this looked like a military matter, but it's now evident that Putin intends to exterminate as many Ukrainian people as possible. Few of us were around for World War Two, but the images coming out of Eastern Europe certainly look like the documentaries and movies we've viewed all our lives.
On March 8, Putin wasn't being called a war criminal; today, he is. Twelve days ago, Putin wasn't being compared to Adolf Hitler; today, he is. The civilized world has turned against him. That escalated quickly.
If the Putin government survives the year, Russia will be an impossible place to do business. Prominent symbols of Americana like McDonald's will be vilified by the government and permanently driven out of the country. If Putin loses his grip on power, there's no way to tell who will be in charge, and there's a chance of a Russian civil war.
Once all McDonald's stores in Russia are closed, they won't be reopening.
Fox News commentator Geraldo Rivera recently said, "In three weeks Putin destroyed modern Russia."
It would be impossible for McDonald's to resume operations in a nation as it reverts to the dark ages.
March 17, 2022
March 16, 2022
March 13, 2022
March 12, 2022
Two Wall Street Journal articles:
I believe the first article is a freebee and the second is behind their paywall. I say - I believe - because I'm a subscriber and my devices are loaded with WSJ cookies, so I don't know what you see when you try to log on. You might see other offers to subscribe. The WSJ is phenomenal and worth every penny of their subscription price(s), if you use it. I try not to push visitors to subscription websites. But more and more people on the internet want to be paid for their work.
March 11, 2022
"Of particular concern are Western companies that once symbolized post-Soviet Russia’s integration into the world economy, like McDonald’s and Ikea, that have now shuttered hundreds of stores and factories. Mr. Putin told officials in the televised meeting that the assets of such companies should be put under “external management” and then transferred “to those who want to work.”
March 9, 2022
I hope these companies who are closing operations in Russia and Ukraine are not really doing it because of Twitter or threats of boycotts. Social media is not "listening to our customers", it's not a focuse group or consumer surveys. It's just a bunch of people messing around on the internet. The business press has kind of blended with social media and can base entire articles on a few tweets or hashtags. Best we all ignore it.
March 8, 2022
If this is being done because it's impossible to operate because of supplies and logistics, it's the right thing to do. If it's being done as a way to put political pressure on the Russian government, it's a huge mistake.
March 5, 2022
As we discussed, if you close stores they may never open again. Russia is not the USA. Franchise agreements and store leases mean nothing in a communist country. Stick with helping with the humanitarian crisis. Stay out of the politics.
Here's an article listing companies that have taken action against Russia. Notice very few have brick-and-mortar locations that they intend to close. The Russian people love American food. One sure way to change that would be to close locations, putting thousands of their countrymen out of work.
March 4, 2022
It's one thing to stop shipping products into Russia. It's another thing to close locations. Given the politics in Russia, if a company closes locations to protest the war, they may never open again. 847 stores? That's a big chunk of MCD earnings!
Russian people love American products and culture. Don't screw that up.
Stay out of it!
March 2, 2022
Sure they can. Once they announce that McDonald's is taking McPlant nationwide BYND shares will spike and many shareholders will take their profits. After that the typical McDonald's store will sell 10 - 15 a day and no one will notice when McPlant disappears from the menu.