- Reuters
- 42 Minutes ago

War impact: McDonald’s business suffers in Middle East
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- Web Desk
- Jan 05, 2024

WEB DESK: McDonald’s Corp is facing a significant business impact in the Middle East due to the ongoing conflict between Israel and Hamas, as stated by Chief Executive Officer Chris Kempczinski.
The fast-food giant has become the target of boycotts following reports on social media that franchised stores in Israel provided meals to the nation’s soldiers after the October 7 Hamas attack.
These actions led to boycotts in several countries, including Saudi Arabia, Malaysia, and Pakistan. However, McDonald’s operators in these countries emphasized that these actions did not represent their own views.
Kempczinski, in a message posted on LinkedIn on Thursday, expressed that “several markets in the Middle East and some outside the region are experiencing a meaningful business impact due to the war and associated misinformation that is affecting brands like McDonald’s,” without providing specific details.
He described the situation as “disheartening and ill-founded,” emphasizing that McDonald’s restaurants are operated by local owners.
The majority of McDonald’s worldwide locations are run by franchisees. In the Middle East, these locations fall under the company’s international developmental licensed markets division, contributing about 10% to the company’s revenue.
In October, Kempczinski acknowledged being “deeply disturbed by the acts of antisemitism and Islamophobia” stemming from the war, but he didn’t directly address the impact on the business.
McDonald’s representatives have not immediately responded to requests for details about the magnitude of the situation.
