McDonald’s Sales Hit by Boycotts Over Israel Support: A Quick Overview

McDonald’s Misses Sales Targets: The company says boycotts over its perceived support for Israel have played a role.

The last quarter of 2023 performance was affected, with only 0.7% sales growth in the Middle East, China, and India.

Lists circulate on social media accusing brands, including McDonald’s, of supporting Israel without clear explanations.

McDonald’s Israel branch provided free meals to Israeli troops during the Gaza bombardment, angering critics.

Since October, a global boycott call against McDonald’s with a more pronounced impact in the Middle East.

The sales growth target of 5.5% was achieved by only 0.7% from October to December in the Middle East, India, and China.

Franchises in Saudi Arabia, Oman, Kuwait, UAE, Jordan, Bahrain, and Turkey distance themselves from the free food campaign and pledge aid to Gaza.

CEO Chris Kempczinski acknowledges the human tragedy and doesn’t expect significant changes as long as the war continues.

Starbucks reduces its annual sales forecast globally and in the US from 5-7% to 4-6% after a growth slump.

The Gaza War has had a significant effect on Middle Eastern sales and traffic.

Starbucks faces trouble after a union post supporting Palestinians; Starbucks sues for trademark infringement.

Sales also slow in the US as protesters call for Starbucks to take a stand against Israel.

Past Boycotts: From 1967 to 1991, the Arab League boycotted Coca-Cola for building a bottling plant in Israel.

Coca-Cola’s red logo circulates in recent boycott lists on social media channels.

Turkey’s parliament votes to remove Coke from shops and restaurants; Coke’s Turkey distributor reports a 22% drop in sales.

Boycott in Egypt fuels the revival of local soda brand Spiro Spathis with a surge in sales.

Social media claims that Domino’s gave free food to Israeli soldiers, though no evidence supports these claims.

Sales Dip in Asia: Domino’s same-store sales in Asia dropped by 8.9% in the second half of 2023, mainly due to its association with the US in Malaysian consumers’ eyes.

Malaysians rally against Israel’s war, calling for an end; Prime Minister bans Israeli-owned, Israeli-flagged, or Israel-destined ships from docks.

The Managing Director for Domino’s Pizza Enterprises acknowledges the impact of Middle East events on American brands in Asia.

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