Home Estate Planning McDonald’s trades below expectations as Israel-Gaza war protests hurt sales

McDonald’s trades below expectations as Israel-Gaza war protests hurt sales

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McDonald’s traded below investor expectations and sales slowed in many markets in part due to protests over the ongoing conflict in Gaza. 

Global sales across its stores grew 3.4 per cent in the fourth quarter below analyst expectations of 4.7 per cent. 

While revenue reached $6.41bn (£5.11bn) down 0.7 per cent from estimates of $6.45bn (£5.41bn). 

McDonald’s has been scrutinised by pro-Palestinian groups after it emerged that it gave free meals to Israeli soldiers following the October 7 terror attack on the country by Hamas. 

Franchises in Saudi Arabia and Oman also issued statements distancing themselves from their Israeli counterpart and pledged millions in aid of Gaza. 

In the UK, protesters have targeted McDonald’s branches, with two arrested after even releasing mice at a store in Birmingham, painted in the colours of the Palestinian flag.

Chief Chris Kempczinski said last month calls for boycott have led to “meaningful business impact”. 

“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,” he said in a LinkedIn post. 

McDonald’s is one of a host of high street brands which has been targeted by protestors. 

Last week Starbucks  cut its annual sales forecast due to boycotts in the Middle-East. 

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