McDonald's to Acquire Alonyal Amid Boycott Calls in Israel
McDonald's Corporation has announced its plans to acquire Alonyal, the owner of 225 McDonald's restaurants in Israel that have been facing boycott calls due to the ongoing war with Hamas in Gaza.
The terms of the acquisition have not been disclosed. McDonald's stated in a release that the deal is subject to certain conditions that were not specified.
Alonyal has been running McDonald's outlets in Israel for over three decades. Following the sale, the fast-food giant assured that all 5,000 employees of Alonyal will retain their positions.
Amid the boycott campaign, McDonald's establishments in Israel drew criticism for providing free meals to Israeli soldiers.
"We acknowledge the ongoing tragic impact of the war on families and communities in the region, and our thoughts are with them during this difficult time," stated McDonald's CEO Chris Kempczinski during an analyst call.
Kempczinski mentioned that the boycott had a significant effect on the company, although he did not provide further details.
McDonald's reported disappointing fourth-quarter sales, with a 0.7 percent decline in comparable sales at franchised restaurants outside the U.S.
"The impact of the ongoing conflict in the Middle East is evident in various Muslim countries like Malaysia, Indonesia," stated Kempczinski.
Similar effects have been observed in countries with significant Muslim populations such as France, particularly in restaurants located in heavily Muslim neighborhoods, he added.
McDonald's is just one of the many Western brands facing criticism from pro-Palestinian activists amidst the war.
Other chains like Burger King, KFC, Pizza Hut, and Starbucks have also been targeted by activists.
Starbucks clarifies on its website that claims of financially supporting the Israeli government and military are completely false. The company emphasizes that as a public entity, any corporate contributions are disclosed as required.
