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McDonalds signed an agreement to buy the 225 restaurants that make up its franchise in Israel, the American fast food chain announced, after months of significantly reduced sales due to pro-Palestinian boycott action amid the war between Israel and Hamas.
The restaurants have been owned by Israeli company Alonyal Limited for over 30 years.
“An agreement to sell Alonyal to McDonald’s Corporation has been signed,” the McDonald’s statement said Thursday. “Upon completion of the transaction, McDonald’s Corporation will own the restaurants and operations of Alonyal Limited, and employees will be retained on equivalent terms.”
McDonald’s reported its first profit shortfall in nearly four years in February, hit by weak sales growth in its division that includes the Middle East. Consumers around the world, but particularly in majority Arab and Muslim countries, have boycotted the brand due to what they perceive as its support for Israel, following the franchise’s Israeli branch’s decision to provide McDonald’s meals free to Israeli soldiers deployed in Gaza following Hamas. carried out the October 7 terrorist attacks.
In January, McDonald’s CEO Chris Kempczinski described a “significant business impact” on the chain’s market in the Middle East and parts beyond the region as a result of the war and its aftermath. called “associated misinformation” about the company.
cnbc
