McDonald's CEO has revealed that the company has suffered a “significant business impact” following the controversy over the war between Israel and Hamas.
Chris Kempczinski said the fast food giant had been negatively affected in Middle Eastern markets and “some outside the region” after calls to boycott the chain.
This comes after a controversy in October when McDonald's Israel announced that it had donated thousands of free meals to Israeli army forces participating in military operations. Conflict.
The move sparked an angry reaction from critics of Israel's military action last year Gazaincluding calls from some for a consumer boycott.
McDonald's Franchisees in Saudi Arabia, Oman, Kuwait, the UAE, Jordan and Turkey also issued statements distancing themselves from the move, with many pledging to provide aid to Gaza.
At the time, sources at the company's US headquarters were keen to steer clear of the controversy by stressing that its franchises were independent companies licensed under the McDonald's brand.
Writing on LinkedIn on Thursday, Mr. Kempczynski blamed the war and “related misinformation,” saying, “We hate violence of any kind, stand firm against hate speech, and will always proudly open our doors to all.”
He added: “I also realize that many markets in the Middle East and some outside the region are seeing a tangible business impact due to the war and associated misinformation affecting brands like McDonald’s.
“This is disappointing and unfounded. In every country we operate in, including Muslim countries, McDonald's is proudly represented by local owners who work tirelessly to serve and support their communities while employing thousands of their fellow citizens.
“This connection to the local community is the genius of the McDonald's system.”
Kempczinski did not go into details about how the company was affected.
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However, McDonald's Malaysia last month blamed a boycott by pro-Palestinian activists for a drop in its profits, which it said led to closures and job cuts.
This came as the company announced legal action against Malaysia's Boycott, Divestment and Sanctions campaign over social media posts urging consumers to avoid the fast food chain due to Israel's “genocidal war”.
In October, McDonald's Israel also criticized “false information” and denied on social media that it supports Palestinian organizations.
She wrote on social media that more than 100,000 meals had been provided “to all state defense workers, hospitals and surrounding areas.”
In addition to calls for a boycott, McDonald's has also been subjected to protests Live rodents were thrown into at least two McDonald's branches in Birmingham In incidents apparently related to the dispute.
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According to 2022 figures, McDonald's has franchised and operated more than 40,000 branches in over 100 countries, recording total annual revenues of $23bn (£18bn) for the year.
The fast food company is among a series of companies hit by war-related controversy, including… Cosmetics retailer Lush And Zara clothing chain.
It has conflict too It had an impact on navigation in the Red Sea After the Houthi attacks in Yemen.
This comes after about 1,200 people were killed when Hamas attacked Israel on October 7, according to Israeli officials.
Since then, more than 22,400 people have been killed by Israeli forces in Gaza, according to the Hamas-run Health Ministry, representing about 1% of the territory's population of 2.3 million.
