War in Gaza hits McDonald’s with ‘meaningful business impact’ following calls for boycotts
The chief executive of McDonald’s has revealed the company has suffered a “meaningful business impact” following controversy surrounding the Israel-Hamas war.
Chris Kempczinski said the fast-food giant had been negatively affected in both Middle Eastern markets and “some outside the region” following calls for a boycott of the chain.
It comes after a row in October when McDonald’s Israel announced it had donated thousands of free meals to Israel Defence Forces (IDF) troops involved in the conflict.
The move sparked a furious backlash from critics of Israel’s military action in Gaza, including calls from some for a consumer boycott.
McDonald’s franchises in Saudi Arabia, Oman, Kuwait, the United Arab Emirates, Jordan, and Turkey also issued statements distancing themselves from the move, with many of them pledging aid to Gaza.
At the time, sources at the company’s US headquarters were keen to keep out of the controversy by stressing its franchises were independent businesses licensed under the McDonald’s brand.
Writing on Linkedin on Thursday, Mr Kempczinski blamed both the war and “associated misinformation”, saying: “We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone.”
He added: “I also recognise that several markets in the Middle East and some outside the region are experiencing a meaningful business impact due to the war and associated misinformation that is affecting brands like McDonald’s.
“This is disheartening and ill-founded. In every country where we operate, including in Muslim countries, McDonald’s is proudly represented by local owner operators who work tirelessly to serve and support their communities while employing thousands of their fellow citizens.
“That local community connection is the genius of the McDonald’s System.”
Mr Kempczinski did not go into details of how the company had been affected.
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However, last month McDonald’s Malaysia blamed a boycott from pro-Palestinian activists for a dip in its profits, which it said had resulted in closures and job cuts.
It came as the company announced legal action against Malaysia’s Boycott, Divestment and Sanctions campaign over social media posts which urged consumers to avoid the fast-food chain over Israel’s “genocidal war”.
In October, McDonald’s Israel also hit out at “false information” as it denied on social media that it had been supporting Palestinian organisations.
It wrote on social media that more than 100,000 meals had been given to “all those who are involved in the defence of the state, hospitals, and surrounding areas”.
As well as boycott calls, McDonald’s has also been hit by protests, while live rodents were thrown into at least two McDonald’s branches in Birmingham in incidents apparently linked to the row.
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Red Sea crisis hits high street brands
According to figures from 2022, McDonald’s franchised and operated more than 40,000 branches in over 100 countries, reporting a total annual revenue of $23bn (£18bn) for the year.
The fast-food firm is among a string of companies to be hit by controversy related to the war, including cosmetics retailer Lush and clothing chain Zara.
The conflict has also had an impact on shipping in the Red Sea following attacks by Houthi rebels in Yemen.
It comes after around 1,200 people were killed when Hamas attacked Israel on 7 October, according to the country’s officials.
Since then more than 22,400 people have been killed by Israeli forces in Gaza, according to its Hamas-run health ministry, amounting to almost 1% of the region’s population of 2.3 million.
The tone has changed totally. It’s a remarkable turnaround from the Oval Office meltdown to the perfect phone call.
President Trump is wholly transactional. His desire for give and take far outweighs any ideological instincts. He has no particular alignment to Ukraine or, for that matter, to Russia.
He just wants a deal. Peace would stop the killing as he has said repeatedly. It would also allow for deals which can benefit America: recouping the taxpayer money spent on Ukraine and reconnecting the American economy with Russia.
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Will Trump turn on Putin?
But trumping all that is his legacy and his image. He wants to be seen as the peacemaker president.
Since the Oval Office moment, Ukraine’s President Zelenskyy seems now to have recognised all that.
Ukraine’s approach towards Trump has changed. Zelenskyy is now playing his game: transactionalism.
The minerals deal hasn’t dissolved. The indications I am getting is that it’s essentially been upgraded and broadened to a wider scope: fuller economic cooperation.
Zelenskyy needs to encourage America deep into his country economically. Has he bought into the idea that a US economic footprint amounts to a key part of a security guarantee?
Read more:
A timeline of Trump and Zelenskyy’s relationship
What could be the future of Ukraine?
Sky’s correspondents react to Trump-Putin phone call
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The old adage is: “If you are not at the table, you are on the menu.” That’s too true with President Trump.
Zelenskyy now feels like he’s at the table and I am told he doesn’t feel coerced.
The challenges remain huge though: he doesn’t trust Putin. That’s what he tried to tell President Trump in the Oval Office. The performance that day proved to him that Trump is inclined to trust Putin.
Zelenskyy must use transactionalism to draw an impatient Trump in.
President Trump is in a hurry for a deal. He’s inclined to accept wholly disingenuous commitments from Russia, or as one source put it to me: “Trump has a high tolerance for bullshit…”
That’s the jeopardy for Zelenskyy.
US
Donald Trump has ‘very good’ call with Volodymyr Zelenskyy in which he discusses US ownership of Ukrainian energy plants
US President Donald Trump has had a “very good” call with Volodymyr Zelenskyy, the White House says, during which US ownership of Ukraine’s energy network was discussed to help protect it.
Mr Trump also agreed to “help locate” additional air defence support in Europe after a request from the Ukrainian leader, a statement about the one-hour phone call said.
Further talks will take place in Jeddah, Saudi Arabia, in the coming days, and the US will continue intelligence sharing with Ukraine, White House press secretary Karoline Leavitt told reporters.
Mr Trump also agreed to work to ensure missing Ukrainian children are returned home and both parties agreed to a temporary 30-day ceasefire involving attacks against energy facilities, with the US president saying the US “could be very helpful in running those plants with its electricity and utility expertise”, Ms Leavitt said.
Secretary of state Marco Rubio also issued a statement about the call saying that “President Trump also discussed Ukraine’s electrical supply and nuclear power plants.
“He said that the United States could be very helpful in running those plants with its electricity and utility expertise. American ownership of those plants would be the best protection for that infrastructure and support for Ukrainian energy infrastructure.”
The White House statement added that Mr Trump and Mr Zelenskyy also reviewed the situation in Kursk and agreed to share information closely.
The presidents instructed their teams to move ahead with the details of implementing a partial ceasefire, with discussions to include expanding any ceasefire to the Black Sea.
“We have never been closer to peace,” Ms Leavitt added.
In comments later on Wednesday, Mr Zelenskyy said that Mr Trump understands that Ukraine will not recognise occupied land as Russian, and that he would like the US president to visit Ukraine – adding that “it would be helpful for Trump in his peace efforts”.
In an earlier statement, President Zelenskyy said the two leaders had “a positive, very substantive and frank conversation”.
Mr Zelenskyy echoed much of Mr Trump’s statement about what was decided, and said later that he “felt no pressure” from the US president.
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Trump and Zelenskyy ‘on track’
“We agreed that Ukraine and the United States should continue working together to achieve a real end to the war and lasting peace. We believe that together with America, with President Trump, and under American leadership, lasting peace can be achieved this year,” Mr Zelenskyy said
He added that Ukraine would “continue working to make this happen”.
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“I stressed that Ukrainians want peace, which is why Ukraine accepted the proposal for an unconditional ceasefire,” he said. “I highlighted the importance of President Trump’s concept of peace through strength. We agreed to maintain constant contact, including at the highest level and through our teams.”
In an earlier post on Truth Social, Mr Trump said the “very good” phone call lasted around one hour.
Read more:
A timeline of Trump and Zelenskyy’s relationship
What could be the future of Ukraine?
Sky’s correspondents react to Trump-Putin phone call
“Much of the discussion was based on the call made yesterday with President Putin in order to align both Russia and Ukraine in terms of their requests and needs,” Mr Trump said.
“We are very much on track,” he added.
The call marks the first time Mr Trump and Mr Zelenskyy have spoken since the disastrous confrontation in the White House last month.
Mr Zelenskyy travelled to Washington expecting to sign a critical minerals deal but left early after he and Trump clashed in front of the world’s cameras.
On Tuesday, Mr Trump and Vladimir Putin held a phone call lasting about an hour and a half in which the Russian leader rejected a full 30-day ceasefire.
He agreed to not attack Ukraine’s energy infrastructure for 30 days. The two countries also swapped 175 prisoners each earlier this morning.
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