The McDonald's corporation is grappling with a significant downturn in sales across the Arab region and the Islamic world following a widespread boycott over its support for Israel.
McDonald's Chief Financial Officer, Ian Borden, revealed that the boycott campaign swiftly resulted in staggering financial losses estimated at approximately $7 billion. This dramatic decline was reflected in a sharp drop of over 3 percent in the company's shares during Wednesday's trading session, marking one of its most substantial daily losses in five weeks.
The impact on McDonald's stocks continued to be felt as shares plummeted by 3.37 percent, amounting to $9.93, ultimately settling at $284.36 on Thursday. This downturn translated into a staggering loss of $6.87 billion for the renowned fast-food corporation.
These developments coincide with Borden's acknowledgment of the inevitable decline in international sales for McDonald's due to ongoing conflicts in the Middle East and subdued demand in China. Speaking at the Global Consumer and Retail Conference, Borden admitted that comparable sales within McDonald's licensed international developmental markets for the first quarter were anticipated to be "slightly lower" than the previous three months.
McDonald's joins a list of Western franchises targeted by boycott campaigns over their perceived support for the Israeli Occupation Forces (IOF). Other brands facing similar pressure include Burger King, KFC, and Pizza Hut, as well as major corporations like Coca-Cola, Pepsi, Puma, Starbucks, and Zara, either due to their explicit support for Israel or financial ties with the country.
The backdrop to these boycotts is the devastating impact of Israel's conflict with Gaza, with over 31,000 Palestinians killed by the IOF, predominantly civilians and children. The war has led to the forced displacement of over 80% of Gaza's population, with UN reports highlighting dire conditions, including starvation among children, as Israel's blockade restricts aid access, pushing Palestinian populations into famine.
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