Chris Kempczinski, CEO of McDonald’s, has acknowledged that the boycott by Muslims in support of Gaza has contributed to a decline in the global fast-food chain’s sales.
McDonald’s has reported its first decline in global sales since 2020, attributing the downturn to the boycott of Israel led by Palestinian supporters worldwide. This boycott was triggered by the ongoing siege of Gaza by Israel, which has persisted since October of last year.
Kempczinski discussed the impact of the boycott during a recent earnings call, noting that consumer sentiment in key markets has been negatively affected, particularly in regions with strong support for Palestine.
The fast-food giant reported quarterly revenues of $6.49 billion, a figure largely unchanged from the previous year. However, net profit fell by 12% to $2.02 billion, falling short of Wall Street expectations. The company’s international sales declined by over 1%, a significant figure given McDonald’s presence in more than 100 countries with over 40,000 restaurants.
Kempczinski attributed part of the decline to consumers becoming “more discriminating with their spending,” likely influenced by the boycott campaign.
The boycott against McDonald’s and other American companies began in October 2023, following McDonald’s announcement of donating thousands of free meals to Israeli soldiers in the Israeli-occupied Palestinian territories. This move sparked significant backlash, particularly in Muslim-majority countries and among supporters of the Palestinian cause.
