The boss of McDonald’s has confirmed the business’s bottom line has suffered as a result of boycotts relating to the Israel-Hamas conflict.
Chris Kempczinski, the CEO of McDonald’s, has taken to LinkedIn to share his hopes for the business in 2024 and to reaffirm the business’s support for suffering communities.
Kempczinski’s post also addressed the issues the brand is facing in the Middle East, as a result of the war in Gaza and “associated misinformation.”
“Several markets in the Middle East and some outside the region are experiencing a meaningful business impact due to the war and associated misinformation that is affecting brands like McDonald’s. This is disheartening and ill-founded,” the fast food boss wrote.
He added: “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.”
McDonald’s, and a handful of other well-known Western brands, have been hit by grassroots boycotts since the conflict between Israeli forces and Hamas soldiers escalated in October last year.
Western brands are being shunned in countries that have large Muslim populations, who have been staunch supporters of the Palestinian people’s plight.
Governments like the U.S. however—the home nation of McDonald’s—had previously been supportive of Israel, though that backing appears to be beginning to wane.
McDonald’s was also accused of having pro-Israel ties after the company’s autonomous franchise in Israel said it was donating meals “to all those who are involved in the defence of the state, hospitals, and surrounding areas.”
Although all under the same banner of golden arches, other McDonald’s franchises in the region moved to distance themselves from the Israel group. As per Reuters, franchises in Saudi Arabia, Oman, Kuwait, the United Arab Emirates, Jordan, and Turkey quickly issued statements disassociating themselves from Israel’s actions.
A statement from McDonald’s KSA, which runs restaurants in Saudi Arabia, on Oct. 14 explained: “We reiterate and confirm that McDonald’s International is a listed joint stock company, owned by millions of shareholders from around the world, including Arabs and Muslims. Out of concern for its commercial interests around the world, it never interferes in politics and always adheres to absolute neutrality. It does not adopt any political positions.
“This is to preserve its commercial interests spread in more than 120 countries around the world. Any individual decision or action of one of its agents in any country is not considered a representation of it, its policy, or its values and principles.”
In his LinkedIn post this week Kempczinski reiterated widespread support: “We continued to stand in solidarity with communities around the world, living our purpose and values to the fullest through difficult times.
“Our hearts remain with the communities and families impacted by the war in the Middle East. We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone.”
McDonald’s did not respond to Fortune’s request for further comment.
Pushing back
At a global level, McDonald’s hasn’t taken kindly to the accusations of political preference.
According to Reuters, in Malaysia McDonald’s is seeking 6 million ringgit ($1.31 million) in damages from the Boycott, Divestment and Sanctions (BDS) Malaysia movement after it posted on social media that the McNugget maker had links to Israel’s “genocidal war against Palestinians in Gaza.”
The restaurant giant added it had suffered losses and had been forced to make job cuts as a result of the posting. BSD denies defaming the company.
McDonald’s isn’t the only big U.S. brand facing backlash because of its actions—or lack of action—over the Israel-Hamas conflict, a war that has now claimed more than 22,000 lives.
Coffee chain Starbucks is also in the midst of an internal battle after management decided to sue Workers United—the union organizing employees—because the group posted a pro-Palestinian message on social media.
In response, vandals spray-painted Stars of David and a swastika on the windows of a Rhode Island store while Florida state Rep. Randy Fine tweeted on Oct. 11.: “If you go to Starbucks, you are supporting killing Jews.”
Starbucks has categorically denied holding a political view supporting one side or another. In late December the chain put out a statement, saying: “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.”
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