The McDonald's restaurant chain has announced its first quarterly drop in sales in almost four years. Reuters reports , UNN .
Details
In , the company said that the war in the Middle East "significantly affected" the performance of some foreign markets in the fourth quarter.
According to CEO Chris Kempczynski, the company is also feeling the impact on business in countries such as Malaysia, Indonesia, and France.
He added that as long as the war continues, McDonald's does not expect improvement "in these markets.
According to LSEG, comparable sales in the McDonald's International Developmental Licensed Markets segment increased by 0.7% in the fourth quarter, compared to an increase of 5.5% in the fourth quarter of 2022.
Overall, global sales at McDonald's restaurants opened at least a year ago grew by 3.4% in the fourth quarter, less than analysts had expected, as protests against the company in the Middle East affected their growth.
This also affected the company's revenue, which grew to $6.41 billion, but was also slightly below expectations.
For reference
McDonald's is among several Western brands that have been boycotted for their alleged pro-Israeli stance in the conflict between Israel and Hamas
In addition, according to social media reports, after the October 7 Hamas attack, McDonald's in Israel distributed thousands of free meals. Many McDonald's operators in the region quickly distanced themselves from the Israeli operator's actions.
Recall
The war in the Middle East is also having a negative impact on the oil market. Oil prices are rising amid fears of an escalation of the conflict in the Middle East with more attacks on Gaza and shipping in the Red Sea.