McDonald’s CEO Chris Kempczinski said on Thursday that various markets in the Middle East, along with some outside the region, are facing a “meaningful business impact” due to the Israel-Hamas conflict. Additionally, he acknowledged the influence of “associated misinformation” concerning the brand in these affected areas.
Major Western fast-food chains, including McDonald’s and Starbucks, have faced largely spontaneous, grassroots boycott campaigns over their perceived pro-Israeli stance and alleged financial ties to Israel.
Kempczinski expressed disappointment and concern over the unfounded and disheartening misinformation circulating about brands like McDonald’s.
“In every country where we operate, including in Muslim countries, McDonald’s is proudly represented by local owner operators who work tirelessly to serve and support their communities while employing thousands of their fellow citizens,” Kempczinski said in a LinkedIn post.
McDonald’s and Western Brands Face Boycott Impact:
In October, McDonald’s Israel announced on its social media platforms that it had provided thousands of complimentary meals to personnel of the Israel Defense Forces.
This was later renounced by McDonald’s franchises in several Muslim countries, underscoring the intricate challenges global corporations face in navigating regional politics during times of conflict.
Some Western brands are feeling the impact of boycotts in Egypt and Jordan, with the movement now gaining traction in countries outside the Arab region, including Muslim-majority Malaysia.
On October 7, around 1,200 Israelis were killed by the Palestinian militant group Hamas. Subsequently, Israeli bombardments have resulted in the death of approximately 22,438 people in Gaza as of Thursday.
In fiscal year 2022, the company managed approximately 40,275 McDonald’s restaurants through a combination of franchising and direct operation, spanning over 100 countries. The fast-food chain reported a total annual revenue of $23.18 billion for the year.
The company’s shares experienced a slight decline during afternoon trading.
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