Chris Kempczinski, CEO of McDonald's, stated last Thursday that several markets in the Middle East, along with others outside the region, are experiencing "a significant impact on business" due to the Israeli war on Gaza, in addition to what he called "misleading information" about the brand.
Major Western fast-food chains, including McDonald's and Starbucks, have faced popular boycott campaigns due to their perceived pro-Israel stance and the uncertainties regarding their financial relationships with the country.
Kempczinski considers the misleading information about brands like McDonald's as "frustrating and baseless."
In a post on LinkedIn, he wrote, "In every country where we operate, including Islamic countries, McDonald's represents local owners who proudly work tirelessly to serve and support their communities, employing thousands of their citizens."
Last October, McDonald's Israel on their social media accounts announced that they had provided thousands of free meals to Israeli soldiers.
Franchise owners of the McDonald's brand in some Islamic countries later disassociated themselves from this action, highlighting the polarizing regional policies guiding global companies during the war.
Some Western brands are feeling the effect of boycotts in countries like 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, closely linked to the United States, even though the vast majority of its restaurants are owned by individuals or local companies under a franchise system.
By the fiscal year 2022, the company had granted franchising and operating rights to approximately 40,275 McDonald's restaurants in over 100 countries.
The fast-food chain reported total annual revenues of $23.18 billion for the year. McDonald's shares fell about 1% on Thursday to close at $271.84.
From October 7, 2023, to January 4, 2023, McDonald's shares lost value in 21 trading sessions, reaching the lowest point during this period on October 11, when it dropped to $250.92.
Starbucks Corporation, the American coffeehouse group, has been one of the companies most affected by boycott campaigns following the war on Gaza, with its stock losing more than $11 billion.
