Following the Israeli franchised restaurants’ provision of thousands of complimentary meals to Israeli military, McDonald’s faced boycotts.

McDonald’s Corporation has announced that, in response to international boycotts over the Gaza conflict, it will purchase Alonyal, the owner of 225 McDonald’s restaurants in Israel.
Following the Israeli franchised restaurants’ provision of thousands of complimentary meals to Israeli military, McDonald’s faced boycotts. The transaction’s terms were kept a secret. In a statement, McDonald’s stated that the agreement was subject to certain restrictions, which it did not specify. Following more than 30 years of running McDonald’s restaurants in Israel, Alonyal currently has 225 franchised locations with over 5,000 employees, all of whom will be kept on following the sale.

When releasing its 2023 earnings report in February, McDonald’s stated that its performance was affected by the Gaza conflict, which started in October when Hamas launched strikes against Israel.
During an analyst call, Chief Executive Chris Kempczinski stated, “We recognise that families in their communities in the region continue to be tragically impacted by the war and our thoughts are with them at this time.”

Without providing further details, he claimed that the boycott had a “meaningful” impact.
McDonald’s revenues in the fourth quarter let analysts down. Comparable sales at franchised restaurants outside of the US decreased by 0.7%.

“Obviously the place that we’re seeing the most pronounced impact is in the Middle East. We are seeing some impact in other Muslim countries like Malaysia, Indonesia,” said Kempczinski.

According to him, this also occurred in nations like France that have sizeable Muslim populations, particularly for eateries located in mostly Muslim areas.
Yesterday’s after-market trade saw a nearly 2% decline in McDonald‘s shares.

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