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Financing

McDonald’s has a deal to sell its Russia restaurants to a licensee

Alexander Govor will acquire the company’s entire portfolio, McDonald's said. He has been an operator with the chain in Siberia since 2015.

Financing

McDonald’s Russia closure is a rare international setback

The Bottom Line: The burger giant has flourished in international markets even as its U.S. growth slowed. But its $1.4 billion decision to pull out of the market demonstrates the risk of global expansion.

The burger giant is exiting the market after 32 years, saying ownership of restaurants there is "no longer tenable." It is the company's first exit of a major market in its history.

A major proxy advisory firm endorsed the company’s directors in its upcoming board election, saying the investor is “economically divorced from the potential impacts of its proposals.”

A record 1,700 restaurants changed hands last year and more than a quarter of franchisee units have either closed or been sold since 2019.

While consumers have been flocking to chicken concepts, burgers remain a major draw and chains serving them have thrived since the pandemic, according to the Technomic Top 500 Chain Restaurant Report.

The doughnut chain said that its attention-getting doughnuts, such as one stuffed with a Twix bar, and more locations can generate sales without major price hikes.

The company’s labor issues have improved, but food costs have risen 17% over the past year, thanks to high beef costs. It says pricing alone won’t fix the problem.

Company-operated stores’ profits declined on higher costs, but the chain had one of its best years for unit growth in its history.

The Bottom Line: Quick-service restaurant executives say they’re seeing fewer visits from people with lower incomes and more visits from those with higher incomes. But that difference may not last for long.

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