The Clap
As Western companies rush to put pressure on Russia in their own ways, it’s business as usual for others.
Who?! Show them to me!
Major brands like Starbucks (NASDAQ: SBUX), Pepsi (NASDAQ: PEP) & Coca-Cola (NYSE: KO), as well as fast-food restaurants McDonald’s (NYSE: MCD), KFC, & Burger King (NYSE: QSR), are all still operating in Russia.
Needless to say, they’ve come under fire by Western media, urging them to discontinue operations in Russia.
So, why haven’t they?
It’s a little complicated for them. These companies’ Russia stores are mainly owned by franchisees, who are closely tied with Russian banks & investors. It also means that while these stores generate less revenue for the franchisor, it reduces risk in the event of economic turmoil.
But that’s not the case for all of them
One company owns the majority of its Russia stores: Mcdonald’s. The fast-food chain owns 84% of its restaurants in Russia, resulting in pressure not only from activists but also investors who fear the high uncertainty of the Russian invasion of Ukraine.
