A McDonald’s franchise in Israel reportedly donating meals to IDF soldiers sparked outrage|bobbsled|CC BY-SA 2.0
Fast food chain McDonald’s reported its first quarterly sales miss in nearly four years on Monday, attributing it to weak sales growth in its international division, especially in the Middle East.
The company’s fourth-quarter revenue fell short of expectations, causing its shares to drop about 4%.
Protests and boycotts
The burger giant found itself embroiled in protests and boycott campaigns, primarily related to its perceived pro-Israeli stance.
A McDonald’s franchise in Israel reportedly donating meals to IDF soldiers sparked outrage and reduced sales in the Middle East, China, Malaysia, Indonesia and France.
Not just McDonald’s
The Israel-Hamas war has led to numerous protests and boycotts against Western brands, like Starbucks and Coca-Cola.
- Starbucks reported a 2% stock decline due to weakened US sales in the final quarter of 2023.
- Activists have called for boycotts of other major chains like Domino’s Pizza, Papa John’s, Burger King and Pizza Hut.
Despite these events, McDonald’s managed to surpass profit estimates, reporting an adjusted per-share profit of $2.95.
Looking ahead, the company projects a mid-to-high 40% operating margin for 2024 and plans on adding over 1,600 new restaurants this year.