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McDonald’s has signed an agreement to purchase all 225 restaurants that make up its Israeli franchise, the American fast food chain announced, after months of drastically lower sales due to pro-Palestinian boycott action amid war Israel -Hamas.
The restaurant outlets have been owned by the Israeli company Alonyal Limited for over 30 years.
“An agreement has been signed to sell Alonyal to McDonald’s Corporation,” read McDonald’s statement Thursday. “Once the transaction is completed, McDonald’s Corporation will own the restaurants and operations of Alonyal Limited and the employees will be retained on equivalent terms.”
McDonald’s reported its first revenue decline in nearly four years in February, hit by weak sales growth in its division that includes the Middle East. Consumers around the world, but particularly in Arab and Muslim-majority countries, have boycotted the brand for what they perceive as its support for Israel, following the Israeli franchise branch’s move to provide free McDonald’s meals to deployed Israeli soldiers in Gaza following Hamas attacks. led the October 7 terrorist attacks.
In January, McDonald’s CEO Chris Kempczinski described a “significant business impact” in the chain’s market in the Middle East and some areas outside the region due to the war and what he called “associated misinformation” about ‘agency.