Boycott announced in several countries, McDonald’s to buy Israeli franchise Multinational food chain McDonald’s Corporation announced on Thursday that it is planning to acquire the company Alonial, which owns 225 restaurants of McDonald’s China, in Israel.
Multinational food chain McDonald’s Corporation announced on Thursday that it is planning to acquire the company Alonial, which owns 225 restaurants of McDonald’s China, in Israel.
In light of Israeli attacks on Gaza, demands for the boycott of McDonald’s are being made worldwide.
According to British news agency Reuters, the terms of the deal were not disclosed; however, McDonald’s stated in a statement that the acquisition of Alonial is subject to certain conditions, but no further details were provided in this regard.
Alonial has been operating McDonald’s restaurants in Israel for over 30 years and currently owns 225 franchised McDonald’s restaurants, employing more than five thousand workers, who will be retained after the restaurant acquisition.
In February 2023, McDonald’s reported that the Israeli aggression on Gaza, which began in October, has affected its earnings.
Following the offering of thousands of free meals to Israeli soldiers by franchised McDonald’s restaurants in Israel, demands for the boycott of McDonald’s have been made in several countries worldwide.
The company’s chief executive, Chris Kempczinski, said, “We acknowledge that families in the region are being tragically affected by the conflict, and at this time, our sympathies are with them.”
He mentioned that the effects of the boycott of McDonald’s have been “significant,” but did not elaborate on this matter.
McDonald’s fourth-quarter sales disappointed analysts. There was a comparable decline of 0.7 percent in business from franchised restaurants outside the United States.
“The most noticeable impact is seen in the Middle East. We are witnessing some effects in other Muslim countries such as Malaysia and Indonesia,” he said.
He mentioned that even in large Muslim-populated countries like France, McDonald’s restaurants in Muslim-majority areas have been affected.
On Thursday, there was also a nearly two percent decrease in McDonald’s shares in after-market trading.