McDonald’s sales dented by Israel-Gaza boycotts
The fast food chain disclosed its initial quarterly sales shortfall in nearly four years, citing sluggish expansion in its international business segment.
The company’s CEO previously acknowledged the conflict’s repercussions, attributing them to “misinformation.”
Following the announcement, McDonald’s shares experienced a decline of approximately 4%.
McDonald’s, alongside other Western corporations such as Starbucks and Coca-Cola, has faced boycotts and demonstrations from anti-Israeli activists.
The company stated that the Israel-Gaza conflict significantly affected performance in certain foreign markets during the fourth quarter of 2023.
Sales growth in regions including the Middle East, China, and India was recorded at 0.7% in the final quarter of 2023, significantly below market projections.
Chris Kempczinski, the CEO, highlighted impacts on business in Malaysia, Indonesia, and France, with the Middle East experiencing the most substantial consequences.