McDonald’s experiencing ‘meaningful business impact’ due to war, CEO says
McDonald’s CEO Chris Kempczinski wrote a letter on LinkedIn Thursday addressing “meaningful business impact due to the (Israel-Hamas) war and associated misinformation.”
He did not specify accounts of misinformation in his letter and has not commented further on his claims. Following Hamas’ Oct. 7 attack, McDonald’s Israel posted about providing complimentary meals to Israel Defense Forces soldiers on social media, Fox Business reported.
Franchises in Muslim countries in the region rebuked these actions and some issued statements reminding the public they operate separately from franchises in Israel, per CNN Business.
As a primarily franchise-run company, McDonald’s franchises run independently of each other, meaning any actions taken or donations made by one does not reflect the others nor the company as a whole.
Have Israel-Hamas related boycotts hurt other companies?
Kempczinski cites impact across stores in and outside of the Middle East and referred to the hits taken by several markets alongside his own company.
His announcement comes in the wake of widespread boycotts, perhaps most notably of Starbucks. The company has faced consumer ire in part due to its lack of a stance on the Israel-Hamas war and perceived support of Israel, the BBC reported.
Last week, in response to public backlash, Starbucks issued a statement: “Our position remains unchanged. Starbucks stands for humanity. We condemn violence, the loss of innocent life and all hate and weaponized speech.
“Despite false statements spread through social media, we have no political agenda. We do not use our profits to fund any government or military operations anywhere — and never have.”
In December 2023, Starbucks reported lower holiday sales, reduced foot traffic and an independent analyst lowered the company’s projected sales forecast going into 2024, The Associated Press reported.
According to Reuters, Coca-Cola and Nestle products were removed from restaurants in Turkey in November 2023, as mandated by Parliament due to “public outcry” against them.
As for McDonald’s, Kempczinski claims the same “misinformation” which has affected other markets has also impacted McDonalds and called it “disheartening and ill-founded.”
He went on to say: “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.”
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