McDonald’s Sales Hit by Middle East Boycotts Amid Israel-Hamas Conflict

Boycott campaigns are causing regional business losses for McDonald’s in the Middle East due to allegations about the brand’s support for Israel. In a statement, the Chicago-based hamburger chain said its fourth-quarter revenue came in at $6.41 billion, when the consensus had expected $6.45 billion. It grew 8% year-over-year. However, it only gained 3.4% on a comparable basis, recording a 0.7% decline in its licensed international markets, the same source said.

In the United States, sales increased by 4.3%. As for international activities (excluding franchises), they grew by 4.4% with performances driven by the United Kingdom, Germany and Canada, which were partially impaired by a decline in France. As for net income, it increased by 7% year-over-year to reach two billion (2.04 billion).

"[...] As we said in our prepared remarks, our view is that as long as this conflict, this war continues, we’re not making any plans, we’re not expecting to see significant improvement in that area. [...] What’s happening is a human tragedy and I think it weighs on brands like ours," said Chris Kempczinski, CEO of McDonald’s. And he added: "We remain confident in the resilience of our business in a challenging macroeconomic environment that will persist in 2024."