McDonald’s supports Israel? The consumer boycott may have weakened the company’s results

Luc Williams

management of the company he called such presumptions disinformation. McDonald’s shares fell about 4% after the announcement. McDonald’s is one of several Western corporations, along with Starbucks and Coca Cola, that have been the objects of boycotts and protests by anti-Israel activists. When presenting its financial results, the company admitted that conflict between Israel and Hamas had a negative impact on its revenues in the fourth quarter of 2023.

In Muslim countries in the Middle East, China and India, sales growth in the fourth quarter of 2023 was 0.7%, which is significantly below market expectations. As McDonald’s CEO Chris Kempczinski admitted, weaker results were also felt in Malaysia, Indonesia and France. – As long as this war continues, we do not expect any significant improvement in these markets – said the head of the network.

McDonald’s franchises

McDonald’s is based on a franchise system in which thousands of independent companies own and operate most of the more than 40,000 restaurants around the world. About 5 percent its branches are located in the Middle East.

The company faced criticism after his the Israeli franchise statedthat it distributed thousands of free meals to members of the Israeli military, prompting calls to boycott the brand from those outraged by Israel’s military intervention in Gaza. This has prompted franchise owners in Muslim countries such as Kuwait, Malaysia and Pakistan, to publish statements distancing itself from the company. Kempczinski said the reaction was “disheartening and baseless” and “based on disinformation.”

Network sales

McDonald’s Global Sales increased by less than 4% in the fourth quarter, compared to 8.8%. in the previous quarter, which is significantly below the annual average.

The corporation benefited from inflation, recording its largest sales growth in the United States, while also increasing sales in the United Kingdom, Germany and Canada. However, its U.S. unit saw weaker sales growth than expected as lower-income customers ordered less food and chose cheaper menu items.

Last week, Starbucks also lowered its annual sales forecast, partly due to fewer customers visiting its stores in the Middle East. McDonald’s said Monday that its “thoughts are with the families and communities affected by the conflict in the region.” The company said it “will continue to focus on supporting our employees and the local communities in which we operate.”


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