ALBAWABA – McDonald’s has posted their quarterly financial results, revealing outcome of recent restructuring and heat under the fast-food chain as it struggles with boycott calls in the Middle East, lower consumer spending on restaurants.
McDonald’s resorts to buying all 225 Israeli franchise restaurants as it suffers from boycottGlobal comparable sales growth fell to 1.9 percent for the fourth consecutive quarter, in contrast to LSEG analysts’ expectation of a 2.35 percent rise, as Reuters reports, with the business stating that customers have become "more discriminating with every dollar they spend.”
Following the announcement, McDonald's shares tumbled by over 2 percent in early trading hours, and while the global franchise posted a revenue of $6.17 billion, which is a boost of 4 percent year over year, international same-store sales increased a mere 1.9 percent year on year, a far cry from analysts’ hopes for a 2.33 percent increase.
Earlier this month, McDonald's said 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, following a statement that described how the boycott calls in the Middle East are harming sales.
Loud boycott calls from around the globe came after the restaurant chain announced they are giving a 50 percent discount as well as providing 100,000 free meals to Israeli occupation soldiers, with soldiers starting a trend of taking photos eating McDonald’s to provoke the anti-war activists.
