McDonald's CEO Chris Kempczinski said on Thursday that the company has experienced "significant commercial impact" in the Middle East and some markets outside the region due to Israel's conflict with Hamas and "related misinformation" about the brand. In recent times, major Western fast-food chains including McDonald's and Starbucks (SBUX) have been largely subject to grassroots boycotts in the region due to their pro-Israel stance and alleged financial ties to Israel.
Kempczinski said the misinformation surrounding brands like McDonald's is "frustrating and baseless."
"In every country in which we operate, including 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," Kempczinski said in a post.
It is understood that in October last year, McDonald's Israel stated on its social media account that it had provided thousands of free meals to Israel Defense Forces personnel.
But later, McDonald's franchisees in some Muslim countries quickly distanced themselves from McDonald's in Israel. This underscores the polarizing regional politics that global businesses faced during the war.
Some Western brands are already feeling the impact of the boycott in Egypt and Jordan, which has now spread to a number of countries outside the Arab region, including Muslim-majority Malaysia.
As of fiscal 2022, the company franchised approximately 40,275 McDonald's restaurants in more than 100 countries. The fast-food chain's total annual revenue this year was $23.18 billion.