McDonald's Plans $135 million Investment in Russia Market
03 Feb 2010 - McDonald's will expand by 45 outlets in Russia by the end of this year, CEO Jim Skinner said Monday as the company marked the 20th anniversary of the opening of the first landmark restaurant under Soviet rule in 1990. The expansion, bringing the number of McDonald's in Russia to 290, comes as rival Burger King arrives in Russia. But Skinner dismissed suggestions that the recent market entry of Burger King Holdings Inc., operator of the No. 2 hamburger chain, could hurt the company.
Oak Brook, Ill.-based McDonald's Corp. posted a $1.2 billion profit in the fourth quarter 2009, 23 percent more than a year ago, as it continues to tackle the downturn better than most of its competitors.
Skinner was visiting Moscow to celebrate the 20th anniversary of McDonald's entry into the Soviet Union, which was then opening up to the capitalist West. The first outlet in the country opened on Moscow's Pushkin Square on Jan. 31, 1990, after 14 years of negotiations.
The Pushkin Square McDonald's held celebrations Sunday with Russian folk songs and buy-one, get-one-free deals. Its 1990 opening attracted thousands of Russians who stood in long lines to apply for 600 jobs at the restaurant executives say is the busiest in the world.
The company, the world's No. 1 fast-food company with 32,000 restaurants in 120 countries, is now in 60 Russian cities, serving more than 900,000 customers every day and employing 25,000 people, and plans to spend $135 million this year on its expansion.
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