Now Affecting McDonald's Sales: Gaza War

Global sales are down as the company fends off the perception it has taken Israel's side
By John Johnson,  Newser Staff
Posted Feb 5, 2024 8:59 AM CST
Now Affecting McDonald's Sales: Gaza War
File photo of a McDonald's restaurant.   (AP Photo/Paul Sakuma, File)

The Israeli-Hamas war appears to be hurting the bottom line of McDonald's. The chain said Monday that global same-store sales missed expectations, and the Gaza conflict is seen as a big factor, reports the Wall Street Journal. The trouble began last year when McDonald's announced it was providing free meals to Israeli soldiers, per the AP. That led to boycotts from those who accused the chain of taking sides in the war, which CEO Chris Kempczinski called "misinformation" in a statement last month.

"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 McDonald's," Kempczinski wrote at the time, per the BBC. The trouble has lingered, and it's taking a bite: The Journal notes that 10% of the chain's 18,000 overseas locations are in the Middle East.

  • Starbucks, too: McDonald's is not the only chain to become mired in controversy over the war. Starbucks said last week that it missed quarter expectations because of "misperceptions" about its position on "events in the Middle East," notes Quartz. CEO Laxman Narasimhan mentioned the region five times in a call with analysts, and Quartz explains how the chain has managed to anger supporters of both sides in the conflict.
(More Israel-Hamas war stories.)

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