Anatolia Agency said that the repercussions of the boycott of companies supporting Israel in the wake of the war it waged on the Gaza Strip have become more clear, as many international companies targeted by the boycott are witnessing a significant decline in their financial conditions.
The biggest victim of the boycott
One of the biggest victims of the global boycott is McDonald’s, the American fast food giant. Despite a nominal increase in revenue of 8 percent to $6.41 billion in the fourth quarter of 2023, the company fell short of market expectations set at $6.45 billion, according to Anadolu.
McDonald’s attributed this setback to a slow 0.7% increase in sales in its “International Development Markets” division, which mainly covers the Middle East, China and India. The company aimed to achieve a 5.5% increase in this division between December and January.
While the company’s CEO, Chris Kempczinski, acknowledged the decline in sales in Muslim-majority countries, including the Middle East, Malaysia, and Indonesia, anticipating a recovery after the conflict in Gaza stopped.
It is worth noting that McDonald’s faced angry reactions after declaring its support for Israel and distributing free meals to Israeli soldiers, which sparked widespread protests. But McDonald’s Turkey took a different stance, as it pledged to provide $1 million in humanitarian aid to support war victims in Gaza, especially women, children and the elderly.
Starbucks…an acknowledgment of influence
The famous American coffee chain Starbucks also felt the repercussions of the boycott, especially in the Middle East, according to Anadolu. Its CEO, Laxman Narasimhan, spoke about weak sales and traffic at their cafes in the United States due to the boycott. Despite a good 8 percent increase in revenue to $9.4 billion in the last quarter of 2023, Starbucks did not live up to expectations. The market, Anadolu said, prompted the company to review its annual sales growth goals downward by about 4-6 percent.
Domino’s Pizza.. Sales decline
Domino’s Pizza, another American giant, has faced the boycott directly, especially in Asia, where store sales fell by 8.9 percent in the second half of last year. Pictures circulated on social media showing the company distributing free meals to Israeli soldiers caused major angry reactions, according to the agency.
Anatolia quoted Donald Jeffrey Meig, the company’s general manager, as acknowledging the boycott’s impact on the brand’s sales in Asia.
KFC and Pizza Hut
Yum, the parent company of KFC, Pizza Hut, and Taco Bell, also saw revenues lower than expected in the fourth quarter of 2023. With total revenues reaching $2.04 billion, an increase of 1 percent year over year, it was lower than market expectations. Set at $2.1 billion.
KFC and Pizza Hut’s sales in the Middle East witnessed a decline during the last quarter of 2023, as KFC’s sales fell by 5 percent and Pizza Hut’s by 3 percent, according to Anadolu. Yam’s CEO, David Gibbs, attributed the decline in sales to “ongoing conflicts in the Middle East,” according to what the agency reported.
While the effects of the boycott are evident across various global companies, the process of unraveling their balance sheets continues. The international community is closely watching these companies as they navigate the complexities of geopolitical tensions amid the ongoing war in the Middle East.
