ALBAWABA - Weeks after claiming that the Israel-Hamas conflict was negatively affecting its profits, McDonald's said on Thursday that it is purchasing its 30-year-old Israel franchise from Alonyal Ltd., allowing it to acquire back ownership of 225 locations that employ over 5,000 people.
Alonyal-owned McDonald's Israel announced on social media last October that it had provided hundreds of Israel Defense Forces members with complimentary meals and discounts, causing a worldwide boycott call against McDonald’s, days after Israel launched its most aggressive military hostilities in Gaza strip, which took the lives of over 33,037 Palestinians and injured over 75,668.
McDonald's said in its statement that it “remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward,” without revealing the terms of the agreement.
Earlier in February, Chris Kempczinski, McDonald’s CEO and President, has acknowledged the boycott and its effect on the business, warning investors that Middle East tensions are harming sales, he claimed in a LinkedIn blogpost that McDonald’s does not support violence of any kinds, claiming what’s circulating around is “misinformation”.
McDonald's fourth-quarter sales fell short of forecasts as growth stalled due to calls for boycott in the Middle East, the region which makes up about 10% of McDonald's income, according to Bloomberg, was significantly failing to deliver in sales.
After the deal is finalized, the company intends to search for a new franchisee for its Israel operation in the next months, according to Calcalist, an Israeli economic news website that quoted unnamed individuals engaged in the deal.
