Citizens from Indonesia and Malaysia are boycotting McDonald’s over the distribution of meals to Israeli forces
The American fast food company McMcDonald’s has lost customers all over the world including India and Pakistan. A major reason for this is the company’s apparent support for Israel, which has led to consumer boycotts.
The world-renowned fast food chain reported its first quarterly sales decline in nearly four years due to lower turnover in its international business division. The company’s owner, Israel, has acknowledged the impact of the Gaza conflict, accusing it of being given ‘misinformation’ about the company.
McDonald’s shares fell nearly four percent after the sales decline was announced.McDonald’s is one of many Western companies, including Starbucks and Coca-Cola, that have seen protests and calls for boycotts by anti-Israel campaigners.
McDonald’s said the Israel-Gaza conflict had ‘significantly impacted’ the performance of some overseas markets in the fourth quarter of 2023. McDonald’s branches in the Middle East, China, and India saw sales rise just 0.7 percent in the fourth quarter of last year, well below market expectations.
The company’s chief executive, Chris Kempczynski, said on Monday that its businesses in Malaysia, Indonesia, and France had been affected, with the biggest impact being felt in the Middle East.McDonald’s boss said this situation will stay until this war continues.
We cannot expect any significant improvement (in these markets).McDonald’s relies on a franchise system in which thousands of people around the world own more than 40,000 stores and operate their businesses independently. About five percent of the company’s outlets are located in the Middle East.
Starbucks is also affected:
The fast-food retailer came under fire after its Israel-based franchisee said it had provided thousands of free meals to members of the Israeli army. This angered those angry with Israel’s military action against Gaza and called for a boycott of the brand.
After that, McDonald’s franchise owners in Muslim-majority countries like Kuwait, Malaysia, and Pakistan distanced themselves from the company. Mr Kempczynski described the backlash against McDonald’s as ‘disappointing and ill-founded’ and blamed it on ‘misinformation.
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McDonald’s global sales grew by less than 4 percent in the fourth quarter, more than half of the 8.8 percent in the previous quarter and below its annual average. But on the other hand, the corporation has benefited from price inflation. The highest increase in its sales was recorded in the US, while the UK, Germany, and Canada also saw an increase in sales.
But in the U.S. businesses also saw less-than-expected sales growth as lower-income customers ordered fewer meals and opted for cheaper menu items. Last week, Starbucks also lowered its annual sales forecast, citing lower customer traffic at its stores in the Middle East.
McDonald’s said Monday it was concerned about the families and communities affected by the conflict in the region. It said it would ‘remain focused on supporting its people and the local communities’ where it operates.
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