NEW YORK: McDonald’s Corporation on Thursday announced to acquire Alonyal, which owns 225 McDonald’s restaurants across Israel, after being hit by boycott over the war in Gaza.
McDonald’s in a statement did not reveal the terms of the transaction but said the deal was subject to conditions.
Alonyal has run McDonald’s restaurants in Israel for more than 30 years, currently owning 225 franchised properties with more than 5,000 employees.
McDonald’s while presenting its 2023 earnings in February, said the war in Gaza that started in October between Israel and Hamas has impacted its business.
McDonald’s had to face with boycott soon after its franchised restaurants gave away free meals to Israeli troops.
Chief Executive Chris Kempczinski in a statement acknowledged that they are impacted by the war.
Analysts are disappointed with McDonald’s fourth quarter sales as its franchised restaurants outside the United States, recorded a decline of 0.7 percent.
Kempczinski said that the international food chain is most impacted in the Middle East adding they are also having some impact in other Muslim nations like Malaysia and Indonesia.
He said that the company is bearing losses in countries with large Muslim populations such as France, especially for restaurants in Muslim neighborhoods.
McDonald’s shares were dropped about 2 percent in after-market trading Thursday.
