McDonald’s faces negative impact due to boycott related to Israel

McDonald’s CEO Chris Kempczinski has acknowledged that the company’s franchises in the Middle East have been significantly impacted by boycotts related to the Gaza conflict. In a recent LinkedIn post, Kempczinski expressed his disappointment and emphasized that McDonald’s is represented by local owner operators who are dedicated to serving and supporting their communities.

He also stated that McDonald’s stands against violence and hate speech and remains committed to welcoming everyone. While the CEO did not provide specific figures regarding the losses from the boycott, the extent of the impact may be disclosed in the upcoming earnings report.

The Gaza conflict put McDonald’s in a challenging position when its franchisee in Israel publicly announced providing free meals to Israeli soldiers and police, leading to boycotts and backlash from Muslim activists across various countries. In response, McDonald’s franchisee in Malaysia has taken legal action against the Boycott, Divestment and Sanctions (BDS) movement.

GAR, the McDonald’s franchisee in Malaysia, has taken legal action against the Boycott, Divestment and Sanctions (BDS) movement for making false and defamatory statements about the chain.

In their lawsuit, GAR is seeking 6 million ringgit ($1.31 million) in damages to compensate for the revenue and job losses they have suffered. Meanwhile, following a series of raids by Hamas, a Palestinian militant group, on October 7, West Jerusalem responded by declaring war on Hamas and launching airstrikes and ground invasions in Gaza. Unfortunately, these Israeli attacks have resulted in the deaths of over 22,000 Palestinians, as reported by local health authorities.