McDonald's to re-acquire franchised chains in 'Israel' amid boycotts
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McDonald's Corp has announced its plan to acquire the Alonyal group in "Israel" as a result of the ongoing boycotting campaign.
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An anti-McDonald's banner held at a pro-Palestine rally (Social media)
McDonald's Corporation announced on Thursday that it plans to acquire all of its restaurants franchised by the Alonyal group in "Israel".
The deal encompasses the sale of all 225 restaurant locations and the retention of the entire staff, which entails at least 5,000 personnel. McDonald's' share value was reported to have declined by almost 2% after the deal was brokered.
The corporation also noted that it remains "committed to the Israeli market."
McDonald's has been a significant target of the vigorous boycotting campaign against franchises and businesses that extend support to the Israeli occupation, particularly following its war and genocide in the Gaza Strip.
In October, Alonyal provided thousands of free McDonald's meals for Israeli occupation soldiers fighting in Gaza. As a result, consumers blacklisted the chain, significantly hitting its revenues.
Bloomberg revealed in February that McDonald's Corporation faced a setback in its fourth-quarter performance as sales failed to meet investor expectations, primarily due to the impact of boycotting on Israeli-linked businesses.
Comparable sales, a pivotal metric in the restaurant industry, grew by 3.4% during the period, marking the slowest pace since Q4 of 2020 and falling short of analysts' average estimates, as reported by the company. Revenue also missed expectations.
Expectations were lowered after Chief Executive Officer Chris Kempczinski's warning earlier this year of a "meaningful business impact" in the Middle East. The segment that includes the region, which accounts for about 10% of McDonald's revenue, fell well short of estimates.
"So long as this war is going on... we're not expecting to see any significant improvement [in these markets]," Kempczinski said.
The economic boycott of 'Israel'
The ongoing boycott aligns with the broader Boycott, Divestment, and Sanctions (BDS) movement, which seeks to exert pressure on "Israel" to comply with international law. Since its establishment, it has garnered global support, with thousands of volunteers advocating for its core principle of severing economic, cultural, and academic ties with "Israel" to champion the Palestinian cause.
The impact of the BDS movement has been profound, particularly in causing economic repercussions for "Israel". Anti-Palestinian factions have gone so far as to label it an "existential threat", acknowledging its effectiveness in challenging "Israel's" economic stability.
In July, a bill was passed in the UK that forbids public figures from boycotting "Israel", a motion that was slammed by Alicia Kearns, a conservative member of the British parliament, saying it "gives impunity to Israel, something that should not be given" to any side,
Iranian leader Sayyed Ali Khamenei also stressed that "Muslim states must not cooperate with Israel economically," supporting and encouraging the boycott in several statements he had made in this regard.
Read more: Boycotting works: McDonald’s acknowledges financial setback
