McDonald’s is experiencing a “meaningful business impact” in the Middle East and elsewhere due to the ongoing conflict between Israel and Hamas, according to company CEO Chris Kempczinski.
In a letter posted on LinkedIn, Kempczinski said that “misinformation” related to the dispute has influenced a number of McDonald’s markets worldwide. Boycott movements have been instigated against businesses such as McDonald’s and Starbucks by groups on both the pro-Israeli and pro-Palestinian side.
Kempczinski’s letter described the situation “disheartening and ill-founded”. Financial ramifications on sales remain undisclosed, with potential revelations expected in the company’s later-to-be-reported earnings.
Fall of last year saw McDonald’s confronting criticism after an Israel-based franchise offered discounts to Israeli military personnel. This decision led to boycott calls from some clients. Many of its branches in Pakistan and Indonesia financially backed aid groups in Gaza. The company’s data shows that over half of McDonald’s’ restaurants operate overseas, with many being locally governed franchises.
Starbucks, another global brand, has also been caught amid the controversy. Pro-Palestine supporters boycotted and vandalized multiple outlets under accusations of Starbucks supporting Israel. U.S. pro-Israel factions also criticized the coffee magnate, with the Orthodox Jewish Chamber of Commerce advocating for a boycott upon Starbucks Workers United expressing support for Hamas. Echoing concerns, Starbucks CEO Laxman Narasimhan issued a letter to employees last month, addressing the rising tensions and the impact on the world.