McDonald's chief executive said “misinformation” about the company's position on the ongoing Israel-Hamas war was hurting sales in the Middle East and Islamic countries around the world.
McDonald's President and CEO Chris Kempczinski said Thursday that “several markets in the Middle East and some markets outside the region are experiencing wars that are impacting brands like McDonald's.'' “We are experiencing a significant impact on our business due to the resulting misinformation.”
Kempczinski wrote as calls for a boycott of America's fast food giants grow. In a LinkedIn post He said he found the development “disappointing and unfounded.”
“In every country in which we operate, including Islamic countries, McDonald's is proudly run by local owner-operators who work tirelessly to serve and support their communities while employing thousands of their fellow citizens. are represented.”
In the days after the Oct. 7 Hamas attack, a mob of Lebanese protesters attacked a local after an Israeli McDonald's franchise announced it would provide free meals to Israeli soldiers participating in military operations. With the looting of McDonald's restaurants, the “local owner-operator” distinction was lost. Operation in Gaza.
McDonald's Israel announced on its social media accounts that it has provided thousands of free meals to Israeli Defense Forces soldiers.
The Israeli franchisee's efforts were later abandoned by McDonald's franchises in some Islamic countries, highlighting the polarization of regional politics that global corporations are increasingly facing during times of war.
Kempczinski declined to say how much financial loss the company suffered as a result of the boycott.
His LinkedIn post echoes recent comments made by Starbucks CEO Laxman Narasimhan, who said people protesting the company over its stance on the Israel-Hamas war. , said the Seattle-based coffee chain “was influenced by misrepresentations on social media” about what it stood for.
A Turkish television station recently fired a newscaster who appeared on air drinking Starbucks coffee, a move that critics denounced as tantamount to expressing support for Israel.
A boycott of Starbucks in the weeks following the outbreak of war in the Middle East valued the company at up to $12 billion.
In the third quarter of last year, McDonald's reported an 8.3% sales increase in overseas markets, but that was before the Oct. 7 attack by Hamas terrorists that killed 1,200 Israelis.
McDonald's is scheduled to announce its fourth quarter results later this month.
McDonald's stock was trading 1.3% lower as of midday Friday.
As of fiscal 2022, the company franchised and operated approximately 40,275 McDonald's restaurants in more than 100 countries.
The fast food chain reported total annual revenue of $23.18 billion for the year.
McDonald's Malaysia is suing a boycott movement against Israel for $1.31 million in damages, alleging that its “false and defamatory statements” have damaged its business.
Muslim-majority Malaysia is an ardent supporter of the Palestinian people, and like other Muslim countries, some Western fast food brands have been targeted by boycott campaigns over Israel's military offensive in Gaza. There is.
Gelban Araf Restaurants Ltd. (GAR), McDonald's licensee in Malaysia, has been subject to Malaysia's Boycott, Divestment and Sanctions over a series of social media posts questioning the fast food franchise's links with other companies. (BDS) movement. Israel's “genocidal war against Palestinians in Gaza.''
In response, BDS Malaysia “categorically denies” defamation against the fast food company and said it would refer the matter to the courts.
with post wire
