CEO Chris Kempczinski says McDonald’s sales in the Middle East and beyond have been significantly affected by “false information” about the company’s stance on the Israel-Hamas conflict. “Several markets in the Middle East and some outside the region are experiencing significant financial impact due to the war and related misinformation affecting brands like McDonald’s,” Kempczinski said in a LinkedIn blog post.
Following Hamas’ attack on Israel on October 7, Palestinian supporters shared photos and videos on social media showing franchise stores such as McDonald’s, Starbucks, Coca-Cola and Domino’s in Israel offering free meals to the country’s soldiers as part of boycott campaigns.
“It’s frustrating and unjustified”
The impact of the boycott on the company’s business remains uncertain. However, in the fourth quarter of 2023, McDonald’s reported a positive trend in its global sales, recording a significant increase of 10.9%.
The CEO also highlighted McDonald’s commitment to supporting various communities in the Middle East. “It’s frustrating and unjustified. In every country we operate in, including Muslim countries, McDonald’s is proudly represented by local owners who work tirelessly to serve and support their communities, employing thousands of fellow citizens.”
McDonald’s has said in the past that it takes no side in the conflict and is not responsible for the actions of its franchisees. In November, the pro-Palestinian Boycott, Divestment, Sanctions (BDS) movement called on people to refuse to buy McDonald’s because it allegedly “openly supports” the Israeli military.
McDonald’s, whose restaurants around the world are operated by franchisees who pay the company to use its brand and recipes, operates in Saudi Arabia, Malaysia and Pakistan, among others. Earlier this week, McDonald’s Malaysia filed a lawsuit against a faction of the BDS movement, alleging “false and defamatory claims” related to the Gaza conflict, which significantly impacts the company’s business.
According to Reuters, McDonald’s Malaysia is seeking compensation of more than $1 million (0.92 million euros). “Our hearts continue to be with the communities and families affected by war in the Middle East. We despise all forms of violence and firmly oppose hate speech, and our doors are always open to all,” Kempczinski said.
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2024-01-06 17:30:00
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