McDonald’s is witnessing a downturn in hamburger and chips sales in some Middle Eastern countries and elsewhere, amid the Israeli-Hamas conflict, according to CEO Chris Kempczinski.
Kempczinski indicated on LinkedIn that misinformation had had a ‘significant business impact,’ an apparent reference to recent calls for a boycott in response to social media images and videos depicting the chain’s restaurants in Israel providing meals to military personnel.
The exact sales impact of the images is currently unknown.
Describing the situation as ‘discouraging and baseless,’ Kempczinski stressed that McDonald’s outlets are managed by local independents. Thus, the actions in Israel do not reflect a group initiative.
Restaurant operators in Saudi Arabia, Malaysia, and Pakistan previously distanced themselves from the actions in Israel.
Most of McDonald’s 41,000 global outlets are franchise businesses.
