McDonald’s CEO Chris Kempinski said yesterday, Thursday, that a number of markets in the Middle East, and others outside the region, are witnessing a “tangible business impact.” Because of Israel’s war on Gaza, in addition to what he described as “misinformation” about the brand.
Major Western fast food chains witnessed; Among them: McDonald’s and Starbucks, popular boycott campaigns due to their pro-Israel stance, and doubts about their financial ties to it.
Kempinski said the misinformation about brands like McDonald’s was “frustrating and baseless.”
“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, employing thousands of their own citizens,” Kempinski wrote in a post on LinkedIn.
Last October, McDonald’s Israel said on its social media accounts that it had provided thousands of free meals to members of the Israeli army.
McDonald’s franchisees in some Muslim countries later disavowed this behavior, highlighting the polarized regional politics that guide global companies during the war.
Some Western brands are feeling the impact of the boycott in Egypt and Jordan. The boycott has now spread to some countries outside the Arab region, including Malaysia.
McDonald’s is one of the most famous brands in the world, and is closely linked to the United States, although the vast majority of its restaurants are owned by individuals or local companies, under the commercial franchise system.
By fiscal year 2022, the company has granted franchise and operating rights to approximately 40,275 McDonald’s restaurants, in more than 100 countries.
The fast food chain achieved total annual revenues of $23.18 billion in the year. The company’s shares recorded a slight decline in trading this afternoon.
One of the companies most affected by the boycott campaigns against the backdrop of the war on Gaza is the American coffee shop group Starbucks, whose shares lost more than $11 billion.
