Gaza boycott campaign over Israel Hamas War causes Middle East McDonald losses
Chris Kempczinski، the president and CEO of US fast food giant McDonald’s، warned 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 his and blamed misinformation for his losses in MENA region due to Gaza boycott campaign which hurt sales of the American Company، the world's largest fast food chain، over Israel Hamas War.
Chris Kempczinski، the president and CEO of US fast-food giant McDonald’s، affirmed that the calls to Gaza boycott campaign the US fast-food giant، which are disheartening and ill-founded، have grown over Israel Hamas War and were hurting the company's performance in the Middle East where there are roughly 18 thousand restaurants or 10 % of total overseas.
Misinformation claiming McDonalds is supporting Israeli soldiers
Chris Kempczinski، the president and CEO of US fast-food giant McDonald’s، stated that the Israel Hamas War and associated misinformation claiming McDonalds is supporting Israeli soldiers despite having issued no statements of support leading to Gaza boycott campaign.
Chris Kempczinski، the president and CEO of US fast-food giant McDonald’s، annonced that the company's stock dipped slightly in premarket trading Monday morning after the world's largest fast food chain missed earnings expectations and continued to blame the Israel Hamas conflict، as Starbucks did last week، for lower sales becuase of Gaza boycott campaign over Israel Hamas War.
The business impact of the boycott remains uncertain
Chris Kempczinski، the president and CEO of US fast-food giant McDonald’s، saw that the business impact of Gaza boycott campaign remains uncertain، however، in the fourth quarter of 2023، the company saw a positive trend in its global sales، registering a notable growth of 10.9%.
Chris Kempczinski، the president and CEO of US fast-food giant McDonald’s، reported that the company's same store sales rose % 7.1 in January and revenue of $6.41 billion in the fourth quarter، 7.5% more than the $5.92 billion reported in the same period last year and coming in slightly below the roughly $6.45 billion analysts were forecasting due to Gaza boycott campaign، while net income climbed to $2 billion، or $2.80 per share، compared to $1.9 billion one year ago and below FactSet analysts’ expectations of $2.83 per share.
Impact of the Israel Gaza war down to 0.7% growth in the Middle East
Chris Kempczinski، the president and CEO of US fast-food giant McDonald’s، pointed to the impact of the Israel Gaza war and Gaza boycott campaign for its 0.7% growth in the Middle East، far less than the 4.7% analysts forecasted، however، the company’s shares gained 12% in the year before Friday’s close، ahead of the 9% increase of an S&P 500 restaurant subindex during the same period، the Wall Street Journal reported.
Chris Kempczinski، the president and CEO of US fast-food giant assured that McDonald's which was ranked 217th on Forbes' list of the world’s largest companies last year، has a market cap of $215.46 billion as it has more than 40 thousand locations in more than 100 countries، 95% of which are franchised and owned by local operators.
"Our hearts remain with the communities and families impacted by the war in the Middle East"
"Our hearts remain with the communities and families impacted by the war in the Middle East and we abhor violence of any kind and firmly stand against hate speech، and we will always proudly open our doors to everyone"، Chris Kempczinski، the president and CEO of US fast-food giant McDonald’s added noting that McDonald's was targeted by a global Gaza boycott campaign when its Israeli franchise handed out thousands of meals to soldiers for free so that the Middle East region has been hurt by boycotts carried out in protest of the company's perceived support for Israel in its war on Gaza.
McDonald's has seen a significant decline in Egypt of its sales، which decreased by % 70 percent in October and November compared to the same two months of last year 2022 and the majority of McDonald's franchisees in the Middle East and North Africa published statements in solidarity with Palestinians at the onset of Israel's military campaign in Gaza، with many pledging to donate to those suffering in the enclave.
McDonald's is among the American companies to have been impacted the most by Israel’s war in Gaza
Chris Kempczinski، the president and CEO of US fast-food giant McDonald’s، acknowleged that McDonald's is among the American companies to have been impacted the most by Israel’s war against Hamas in Gaza and blame Gaza boycott campaign of hurting sales in MENA region and the Middle East losses due to misinformation about McDonald’s Israel-Hamas war stance pointing to claims McDonalds is supporting Israeli soldiers.
McDonald's isn't alone، Starbucks، Coca-Cola، Nestle and Domino’s have all faced backlash in the Middle East since the war began that Starbucks CEO Laxman Narasimhan said last week consumer anger over the war hurt sales last quarter and reported $9.43 billion in net sales last quarter and a 5% increase in global sales، short of estimates that put growth closer to 7% as its stores have been hit with protests and vandalism in the Middle East and North America.
