McDonald’s Sales Dented By Israel-Gaza Boycotts
The fast food chain reported its first quarterly sales miss in nearly four years due to weak growth in its international business division.
Its boss previously acknowledged the impact of the conflict, blaming “misinformation.”
Shares in McDonald’s fell about 4% after the announcement.
McDonalds is one of several Western corporations, including Starbucks and Coca-Cola, that have seen boycotts and protests against them by anti-Israeli campaigners.
The firm said that the Israel-Gaza conflict had “meaningfully impacted” performance in some overseas markets in the fourth quarter of 2023.
In the branch, which includes sales in the Middle East, China, and India, sales growth stood at 0.7% in the fourth quarter of 2023, far below market expectations.
Its business in Malaysia, Indonesia, and France has been affected, with the biggest impact felt in the Middle East, chief executive Chris Kempczinski said on Monday.
“So long as this war is going on, we’re not expecting to see any significant improvement [in these markets],” the McDonald’s boss added.
McDonald’s relies on a franchise system in which thousands of independent businesses own and operate most of its more than 40,000 stores around the world. About 5% of its outlets are located in the Middle East.
The fast food retailer drew criticism after its Israel-based franchise said it had given away thousands of free meals to members of the Israeli military, sparking calls to boycott the brand by those angered by Israel’s military response in Gaza.
