A cascade of major American brands, including Starbucks Corp, PepsiCo Inc and Coca-Cola Co, followed McDonald’s yesterday in saying they would cease some or all business in Russia following Moscow’s invasion of Ukraine.

McDonald’s, an icon of the post-Soviet era, runs 84% of its Russian locations itself and said it will continue paying all of its 62,000 staff and restaurant employees there.

Other costs will come from sites it leases and supply chain operations, chief financial officer Kevin Ozan said during a UBS conference today.

“This is a really challenging and complex situation for a global company like us,” he said.

Seven other fast-food brands with more than 2,600 outlets combined in Russia could also take a financial hit from any decisions to pull out, even though nearly all of those restaurants are owned and operated by independent franchisees.

Papa John’s International Inc said in a regulatory disclosure today that it could end up having to absorb the cost of US$15.2 million of receivables associated with its master franchisee in Russia, which runs all of its 188 restaurants there.

Royalties from the franchisee made up less than 1% of Papa Johns total revenue in 2021, the company said.

The pizza chain also said today that it ceased all operational, marketing and business support to – and engagement with – the Russian market, and that it is not receiving any royalties from restaurants there.

Its Russia franchisee owns and operates its own supply chain.