McDonald’s sales fall due to Israel’s war in Gaza: CEO
Tel Aviv: McDonald’s has missed its quarterly sales target for the first time in four years, blaming Israel’s war on Gaza.
McDonald’s CEO Chris Kemshinsky said on February 5 that the war had hit sales in Middle East countries and Muslim-majority countries such as Malaysia and Indonesia.
He said they do not expect much progress as long as the war continues. He pointed out that what is happening in Gaza is a humanitarian disaster and brands like his own will have to bear the brunt of it.
The company’s sales growth in the Middle East, China and India during October-December 2023 was only 0.7 percent. This is in line with the expected growth of 5.5 percent.
After the Israeli franchise of McDonald’s announced free meals to the Israeli forces, there were calls for a boycott of the brand in Muslim countries.
Then the branches in Saudi Arabia, Oman, Kuwait, UAE, Jordan, Egypt, Bahrain and Turkey announced that they are with Palestine and aid.
Globally, McDonald’s grew by 8.8 percent in the last quarter. But now it is only 3.4 percent.
Content Highlight: McDonald’s blames Israel’s war in Gaza for missing sales targets