McDonald's buys back Israeli franchise due to boycott and declining sales
McDonald's Corporation has announced that it will acquire Aronyar, the owner of 225 McDonald's restaurants that have faced boycott calls in Israel. War with Hamas in Gaza.
Terms of the transaction were not disclosed. McDonald's said in a statement that the deal is subject to terms that were not disclosed by the company.
Mr. Aronyar has operated McDonald's restaurants in Israel for more than 30 years. McDonald's said its 5,000 employees will continue working after the sale.
Ronen Zvrun/Reuters
McDonald's released its 2023 financial results in February and said the war in Gaza, which began in October with Hamas' attack on Israel, was weighing on its results.
McDonald's has been the subject of calls for a boycott after its Israeli franchise restaurant provided thousands of free meals to Israeli soldiers.
“We recognize that families in our region's communities continue to be tragically impacted by war,” McDonald's CEO Chris Kempczinski said on a conference call with analysts. Our thoughts are with them at this time.”
He said the impact of the boycott was “significant” but did not elaborate.
McDonald's fourth-quarter sales missed analysts' expectations. Comparable sales at franchised restaurants outside the United States decreased 0.7%.
“The most pronounced impact is obviously in the Middle East, and we're also seeing some impact in other Muslim countries like Malaysia and Indonesia,” Kempczinski said.
This has reportedly happened in countries with large Muslim populations, such as France, especially at restaurants in areas with large Muslim populations.
Alan Pitton/NurPhoto (via Getty Images)
McDonald's is one of a number of Western brands that have drawn criticism from pro-Palestinian activists since the war began.
Activists have also targeted chains such as Burger King, KFC, Pizza Hut and Starbucks.
Starbucks stated on the website Rumors that Starbucks financially supports the Israeli government and military are “patently false.” As a publicly traded company, Starbucks must disclose corporate donations. Note.
Summarize this content to 100 words McDonald's Corporation has announced that it will acquire Aronyar, the owner of 225 McDonald's restaurants that have faced boycott calls in Israel. War with Hamas in Gaza. Terms of the transaction were not disclosed. McDonald's said in a statement that the deal is subject to terms that were not disclosed by the company. Mr. Aronyar has operated McDonald's restaurants in Israel for more than 30 years. McDonald's said its 5,000 employees will continue working after the sale.
A customer at a McDonald's restaurant in Tel Aviv, March 2006.
Ronen Zvrun/Reuters
McDonald's released its 2023 financial results in February and said the war in Gaza, which began in October with Hamas' attack on Israel, was weighing on its results.
McDonald's has been the subject of calls for a boycott after its Israeli franchise restaurant provided thousands of free meals to Israeli soldiers. “We recognize that families in our region's communities continue to be tragically impacted by war,” McDonald's CEO Chris Kempczinski said on a conference call with analysts. Our thoughts are with them at this time.”
He said the impact of the boycott was “significant” but did not elaborate.McDonald's fourth-quarter sales missed analysts' expectations. Comparable sales at franchised restaurants outside the United States decreased 0.7%. “The most pronounced impact is obviously in the Middle East, and we're also seeing some impact in other Muslim countries like Malaysia and Indonesia,” Kempczinski said. This has reportedly happened in countries with large Muslim populations, such as France, especially at restaurants in areas with large Muslim populations.
A demonstrator calling for a boycott of McDonald's holds a placard that reads “Stop the Toulouse-Tel Aviv merger” in front of a McDonald's in Toulouse, France, on January 13, 2024. Hundreds of demonstrators took part.
Alan Pitton/NurPhoto (via Getty Images)
McDonald's is one of a number of Western brands that have drawn criticism from pro-Palestinian activists since the war began.
Activists have also targeted chains such as Burger King, KFC, Pizza Hut and Starbucks.Starbucks stated on the website Rumors that Starbucks financially supports the Israeli government and military are “patently false.” As a publicly traded company, Starbucks must disclose corporate donations. Note.
Israel and Hamas at war
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https://www.cbsnews.com/news/mcdonalds-israel-gaza-war-franchiss-buyback-alonyal/ McDonald's buys back Israeli franchise due to boycott and declining sales
