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McDonald’s chief executive officer claims the negative impact of boycott campaigns alleging support for the Gaza conflict is hitting regional business.
ADVERTISEMENTMcDonald’s sales in the Middle East, as well as some outside the region, have been significantly impacted by ‘misinformation’ about the company’s position on the Israel-Hamas conflict, according to Chief Executive Officer Chris Kempczinski.
“Several markets in the Middle East and some outside the region are experiencing a meaningful business impact due to the war and associated misinformation that is affecting brands like McDonald’s,” Kempczinski said in a blog post on LinkedIn.
Following the October 7 Hamas attack, supporters of the Palestinians shared photos and videos on social media showcasing franchised stores, such as McDonald’s, Starbucks, Coca-Cola and Domino’s in Israel providing free meals to the nation’s soldiers as part of boycott campaigns.
The business impact of the boycott remains uncertain. However, in the fourth quarter of 2023, the company saw a positive trend in its global sales, registering a notable growth of 10.9%.
The chief executive officer also highlighted McDonald’s dedication to supporting the communities in which it operates.
“This is disheartening and ill-founded. In every country where we operate, including in Muslim countries, McDonald’s is proudly represented by local owner operators who work tirelessly to serve and support their communities while employing thousands of their fellow citizens.”
Previously, McDonald’s had stated that it does not take sides in the conflict and it is not responsible for its franchisees’ actions.
In November, the Boycott, Divestment, Sanctions (BDS) movement, a pro-Palestinian organisation, urged people to reject McDonald’s due to its alleged “open support” of the Israeli military.
McDonald’s, whose stores around the world are run by franchisees which pay the company to use its brand and recipes, operates in countries including Saudi Arabia, Malaysia, and Pakistan.
Earlier this week, McDonald’s Malaysia filed a lawsuit against a faction of the BDS movement, alleging “false and defamatory statements” linked to the Gaza conflict that impacted its business.
McDonald’s Malaysia is demanding more than $1 million (€0.92 million) in compensation, according to Reuters.
“Our hearts remain with the communities and families impacted by the war in the Middle East. We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone.“ Kempczinski also noted.
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