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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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.
US President Donald Trump says he has yet to decide whether the US will join Israel militarily in its campaign against Iran.
Asked whether the US was getting closer to striking Iran’s nuclear facilities, Mr Trump said: “I may do it. I may not do it.”
Speaking outside the White House on Wednesday, he added: “Nobody knows what I’m going to do…Iran’s got a lot of trouble, and they want to negotiate.
“And I said, ‘why didn’t you negotiate with me before all this death and destruction?'”
Mr Trump said Iran had reached out to Washington, a claim Tehran denied, with Iran’s mission to the UN responding: “No Iranian official has ever asked to grovel at the gates of the White House.”
Iran’s supreme leader, Ayatollah Ali Khamenei said Iran would not surrender and warned “any US military intervention will undoubtedly cause irreparable damage” to US-Iranian relations.
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Strikes continue
Hundreds have reportedly died since Iran and Israel began exchanging strikes last Friday, when Israel launched an air assault after saying it had concluded Iran was on the verge of developing a nuclear weapon, a claim Tehran denies.
Israel launched three waves of aerial attacks on Iran in the last 24 hours, military spokesman Brigadier General Effie Defrin has said.
Israel deployed dozens of warplanes to strike over 60 targets in Tehran and western Iran, including missile launchers and missile-production sites, he said.
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“The aim of the operation is to eliminate the existential threat to the State of Israel, significantly damage Iran’s nuclear programme in all its components, and severely impact its missile array,” he said.
Early on Thursday Israel issued an evacuation warning to residents of the Iranian Arak and Khandab regions where Iran has heavy water reactor facilities. Heavy water is important in controlling chain reactions in the production of weapons grade plutonium.
Meanwhile Iran says it has arrested 18 people it describes as “enemy agents” who it says were building drones for the Israelis in the northern city of Mashhad.
Iran also launched small barrages of missiles at Israel on Wednesday with no reports of casualties. Israel has now eased some restrictions for its civilians.
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The US is working to evacuate its citizens from Israel by arranging flights and cruise ship departures, the US ambassador to the country has said.
In the UK, Sir Keir Starmer chaired a COBRA emergency meeting on the situation in the Middle East, with a Downing Street spokesperson saying: “Ministers were updated on efforts to support British nationals in region and protect regional security, as well as ongoing diplomatic efforts”.
A senior US senator who supports Donald Trump has told Sky News why he believes the US would be right to intervene in Iran.
Senator Ted Cruz, a Republican from Texas who ran against Mr Trump in 2016 but now backs him, told US correspondent David Blevins that Iran is an “acute threat to the national security of the US”.
He went on to claim that because “Iran is also building ICBMs (intercontinental ballistc missiles)” and “You don’t need an ICBM to go to Israel”, it indicated Iran’s intention “to take a nuclear weapon to the United States to murder Americans”.
“Nobody is talking about invading Iran,” Mr Cruz added. “We’re not going to see boots on the ground.”
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It comes after the US president said he “may do it, I may not do it” when asked if he would launch a strike against Iranian nuclear facilities.
So far, Israel has been attacking Iran alone since it ramped up its military action last Friday, launching strikes against what it says are Tehran’s facilities for developing a nuclear weapon and also destroying its air defences.
Iran has always denied seeking the ability to make a nuclear weapon from its uranium enrichment programme.
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Blevins’s fellow US correspondent Mark Stone says that while figures like Mr Cruz back military action, “a whole host of other figures are saying ‘do not do it'”.
“The social media space is absolutely full of MAGA [Make America Great Again] figures from the right… saying ‘we absolutely must not go into Iran’.”
If the US were to decide to take military action against Iran, it could have implications for the UK, as America may ask to station refuelling aircraft at a British base in Cyprus and B-2 bombers, which could carry the bunker buster bombs required to attack Iran’s Fordow nuclear enrichment facility, could launch from the British base of Diego Garcia.
Mr Cruz told Sky News that while many of Mr Trump’s support base did not want to see the US involve itself in another war, “the overwhelming majority of Americans, nearly 80%, support President Trump, and support President Trump defending us against an Iranian nuclear weapon.”
America is deploying more fighter planes to the Middle East in a “demonstration of force” as tensions escalate and speculation about a possible US strike on Iran continues.
Pictures and flight tracking data show F-35 jets and tanker aircraft being moved towards the region, as well as the tasking of an aircraft carrier, providing options in case President Donald Trump decides to intervene in the conflict.
But one particular aircraft that has not been seen just yet – the B-2 stealth bomber – could reveal the most about America’s intentions towards Iran…
Why is America moving more aircraft to the Middle East?
“It’s giving them options,” says military analyst Michael Clarke. “They have got four types of aircraft – including fighters, interceptors and fighter-bombers – all in the right region.”
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Clarke: What could US involvement look like as Iran attacks ease
The new arrivals can be spread around several existing military bases that the US has in the region in Bahrain, Qatar, UAE, Kuwait and Saudi Arabia.
“More is better and also it’s a demonstration of force,” Prof Clarke added. “There’s a political element behind it, to show the Iranians what they can do, but also to other allies.
“The Americans want to be taken seriously in all of this.”
A Boeing KC-46A Pegasus, primarily used for aerial refueling, is seen on tracking in the eastern Mediterranean. Pic: Flightradar24
Analysis: What aircraft have moved to the region?
Sky News analysis of flight-tracking data shows more than 30 US military planes have been active over parts of Europe and the Mediterranean Sea over the past three days.
These include planes used for reconnaissance, refuelling in mid-air as well as carrying cargo.
Map of US military bases in the Middle East
An air-traffic control recording from the US suggests F-22 Raptors are being sent across the Atlantic. Two refuelling tankers are visible on flight tracking data leaving the US east coast, likely escorting the stealth fighter jets.
In images taken by photographer Glenn Lockett in Suffolk, three US air tankers were seen flying over England, each accompanied by four F-35 jets.
F-35s are one of the most advanced warplanes in the world, known for their ability to evade enemy radar.
A US air tanker seen flying over England, accompanied by F-35 jets. Credit: Instagram/g.lockaviation
Flight tracking data shows that the tankers travelled to the Mediterranean and then returned to the UK.
Most of the US military planes tracked by Sky News regularly turn off their locations and final destinations, according to the data from Flightradar24.
Some of the planes moved from the US to Europe, while others appeared to move closer to the Middle East. At least five of the US military aircraft landed at Chania Airport on the Greek island of Crete.
An air-traffic control recording from the US also suggests F-22 Raptors are being sent across the Atlantic. Two refuelling tankers are visible on flight tracking data leaving the US east coast, likely escorting the stealth fighter jets.
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US insists deployments are defensive
US defence secretary Pete Hegseth stressed that the deployment of more aircraft was defensive in nature, as Washington looks to safeguard its forces in the region.
Fighter aircraft have been used to shoot down drones and projectiles in the past.
America already has a substantial force in the Middle East, with nearly 40,000 troops as well as air defence systems, aircraft and warships.
But as the conflict between Israel and Iran carries on – and President Trump continues to make threats against Tehran – it’s possible that multiple options could be on the table for intervention.
B-2 bombers – the ones to watch?
Asked what he’s looking out for as speculation about whether the US will intervene directly continues, Prof Clarke pointed to one particular aircraft that hasn’t been seen moving towards the region yet: The B-2 stealth bomber.
Known for its iconic triangle shape and ability to penetrate deep air defences undetected, the B-2 has lesser-known capability that could be crucial for any action over Iran: it can carry ‘bunker buster’ bombs.
So far Israel has not been able to damage Iran’s secretive Fordow uranium enrichment plant, which is buried deep beneath a mountain.
A B-2 stealth bomber flies over Washington DC during a 4 July celebration. File pic: AP
The only bomb believed to be powerful enough to penetrate the facility is America’s GBU-57, a 14-ton bomb that is so heavy it can only be launched from the US fleet of heavy bomber aircraft.
Any movement of B-2 bombers to the joint UK-US base on Diego Garcia in the Indian Ocean could “indicate the likelihood that the Americans are going to use bunker busters in Iran,” Prof Clarke says.
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