McDonald’s business ‘significantly’ affected by the boycott campaign in the Middle East and other countries

Chris Kempczinski wrote in his post,

“Misinformation related to war and its associated consequences is adversely impacting McDonald’s and other brands in the Middle East and the region, causing meaningful business effects. It’s disappointing and inaccurate.”

He further stated, “In every country where we operate, including Muslim countries, local franchisees operate McDonald’s with pride.”

McDonald’s operates over 40,000 owned stores worldwide, with approximately five percent in the Middle East. Since the conflict between Israel and Hamas on October 7, McDonald’s corporate headquarters attempted to remain silent on the issue.

READ MORE: How did McDonald’s emerge as a ‘Flashpoint’ in the Israel-Hamas war?

However, the company couldn’t escape the repercussions of the conflict. In response to Israel’s actions in Gaza, people in Gaza initiated a boycott of the brand, leading to statements of disassociation in Muslim-majority countries such as Kuwait, Pakistan, and Malaysia.

Chris Kempczinski’s post comes at a time when there has been a growing boycott movement related to recent events. The Boycott, Divestment, and Sanctions (BDS) movement, advocating for boycotting Israel, divesting from it, and imposing sanctions, has gained momentum. It urges the withdrawal of investments and imposing restrictions on businesses dealing with Israel. While this movement did not explicitly target McDonald’s initially, it has now called for a boycott this week.

This BDS action comes after McDonald’s Malaysia, which is supported by a Saudi company, faced a fine of $1.3 million from BDS Malaysia. In response, McDonald’s Malaysia stated that BDS Malaysia has made “false and incorrect statements” and caused harm to their business.

The BDS movement in Malaysia has pressured McDonald’s to end its franchise agreement due to Israel’s actions in Gaza. Despite McDonald’s corporate headquarters attempting to remain silent initially, the company couldn’t escape the repercussions of the conflict.