McDonald's said the Israel-Hamas war disrupted its sales at Middle Eastern locations, citing misinformation over the conflict and accusations that the company favored one side or the other in the war, said the Wall Street Journal (WSJ) on Monday.
The chain faced backlash after McDonald's Israel said on social media that it provided free meals to Israeli soldiers. Meanwhile, other McDonald's franchisees in the Middle East said they would donate to relief efforts in Gaza.
Follow Israel Hayom on Facebook, Twitter, and Instagram
Both moves drew criticism online, with some critics pushing boycotts of McDonald's, noted WSJ.
"It's a human tragedy, what's going on, and I think that that does weigh on brands like ours," McDonald's Chief Executive Chris Kempczinski said Monday on an investor call. He said that the price increases and menu promotions helped boost US sales over the last quarter of 2023, but the Israel-Hamas war continues to weigh on McDonald's international business.
In December, McDonald's Malaysia sued BDS Malaysia, a pro-Palestinian group, seeking $1.3 million in damages over the group's calls for boycotting companies allegedly supporting Israel.
Kempczinski said "misinformation" in the Middle East and elsewhere was hurting sales. "We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to anyone," said Kempczinski in a message posted to LinkedIn.
The same sentiment was voiced by Starbucks earlier in January as it saw a similar drop in its sales amid the Israel-Hamas war. The chain said that consumers misunderstood the company's position on the conflict.
Starbucks Workers United, the union of the chain's US stores, and local affiliates in October expressed support for Palestinians in social-media posts online. The posts prompted calls from some Jewish leaders to boycott Starbucks as a whole.
The chain sued the union in October, saying its use of Starbucks name and logos damaged its reputation.
This article was first published by i24NEWS
Subscribe to Israel Hayom's daily newsletter and never miss our top stories!
