McDonald’s Corp. has announced a deal to acquire all 225 restaurants of its Israel franchises from Alonyal Ltd., a company owned by Israeli businessman Omri Padan, who has operated them for over 30 years.

CNBC reports the fast-food giant’s buyout follows a significant drop in sales, influenced by pro-Arab boycotts due to the Israeli branch’s provision of free meals to IDF soldiers after the Oct. 7 attacks. Following the boycott, McDonald’s saw sales plunge between 50% and 90% in the Middle East region.

McDonald’s Corp. is a global chain, but its franchises are often owned locally and operate independently. The corporation has reportedly agreed to retain all employees under the same conditions post-acquisition.

In November, McDonald’s asserted its neutrality in the Israel-Hamas conflict, stating, “We are dismayed by the disinformation and inaccurate reports regarding our position in response to the conflict in the Middle East. McDonald’s Corporation is not funding or supporting any governments involved in this conflict, and any actions from our local Developmental Licensee business partners were made independently without McDonald’s consent or approval.”