McDonald’s, the fast-food giant, has reported a notable sales shortfall, attributing part of the decline to consumer boycotts stemming from its perceived alignment with Israel during the Israel-Gaza conflict.
This marks McDonald’s first quarterly sales miss in nearly four years, with weak growth in its international business division being a primary factor. CEO Chris Kempczinski acknowledged the impact of the conflict, citing “misinformation” as a contributing factor.
Shares in McDonald’s dropped approximately 4% following the announcement, underscoring the significance of the sales shortfall. The boycotts against McDonald’s are part of a broader trend targeting Western corporations, including Starbucks and Coca-Cola, by anti-Israeli campaigners.
The Israel-Gaza conflict significantly affected McDonald’s performance in some overseas markets during the fourth quarter of 2023, particularly in regions like the Middle East, Malaysia, Indonesia, and France. Kempczinski noted that as long as the conflict persists, significant improvements in these markets are unlikely.
McDonald’s operates primarily through a franchise system, with independent businesses owning and operating most of its 40,000+ stores globally. The backlash against McDonald’s stemmed from its Israel-based franchise’s decision to provide free meals to Israeli military personnel, sparking calls for a boycott.
Despite criticism and boycotts, McDonald’s remains committed to supporting its employees and local communities. The corporation emphasized its solidarity with families affected by the conflict and reiterated its focus on community support initiatives.
