Fast food giants operating in the Middle East are starting to see a dip in profits as a direct result of Boycott, Divestment, and Sanctions (BDS) efforts against Israel.
As per AL-Monitor, most of McDonald’s 40,000 stores are owned and run by independent businesses as part of a franchise system, with only 5% of its outlets located in the Middle East. However, the fast food chain lowered its full-year sales and profit expectations after its Israeli franchise revealed it had generously donated thousands of meals to the Israeli military, causing significant backlash from the BDS movement.
Since 2005, BDS has been working to persuade people globally to boycott Israeli products or avoid collaborating with any international brands that have links to Israel. While the boycott movement has gained popularity over the years, its momentum soared after the Gaza war broke out in October.
McDonald’s reported a net income of $1.93 billion for the first quarter, which translates to $2.66 per share. While this represents an increase from the previous year’s $1.8 billion, or $2.45 per share, it failed to meet the expectations of Wall Street analysts who had predicted earnings of $2.72 per share.
Starbucks also faced challenges due to BDS boycotts with same-store sales falling by 4% in the second financial quarter, falling short of Wall Street predictions of a 1% increase. KFC also reportedly closed over 100 of its stores in Malaysia, citing challenging economic conditions linked to the Gaza war.
