McDonald’s Buys All 225 Israeli Outlets From Franchisee Involved in Controversial Boycotts

By Trisha Andrada

Apr 05, 2024 11:55 AM EDT

McDonald's announced that it had struck a contract to buy all 225 stores in its Israel franchise, months after significantly reduced sales caused by the pro-Palestinian boycott movement during the Israel-Hamas conflict.

McDonald's to Take Over Israeli Outlets From Longstanding Franchisee

In a press release on Thursday, April 4, the American fast food giant confirmed its intention to acquire Alonyal Limited, the owner and operator of its 225 outlets in Israel. There was no disclosure of financial details, but the conclusion of the acquisition is expected in the following months.

McDonald's said that it will run restaurants and keep over 5,000 workers.

Over the last three decades, Alonyal has operated McDonald's in Israel. Alonyal CEO Omri Padan said Friday that the chain is among the most successful in the nation.

Alonyal was praised by Jo Sempels, McDonald's Corporation's President of International Developmental Licensed Markets, for developing the fast food company and brand in Israel. "McDonald's remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward," he stated.

This picture taken on March 27, 2021 shows a view of a McDonald's restaurant's iconic "golden arches" logo next to a giant coffee cup of its "Aroma" trademark bearing the label in Hebrew characters, by desert scenery along the Dead Sea in the Israeli Dead Sea resort town of Ein Bokek.
(Photo : EMMANUEL DUNAND/AFP via Getty Images)

See Also: McDonald's, Starbucks Experience Sales Decline as Israel-Hamas Conflict Drags On

Israel-Hamas Boycotts Affecting McDonald's Sales

Alonyal caused a stir in October 2023 when it revealed on social media that McDonald's was donating free lunches to Israeli troops.

According to ABC News, the news caused boycotts in nations where Muslims make up a majority, such as Indonesia and Malaysia, as well as in the Middle East. Early in February, McDonald's acknowledged that a decline in sales in the Middle East region contributed to their revenue shortfall in the 2023 fourth quarter, which caused the fast food giant's shares to drop by 4%.

McDonald's also claims that nations like France, which have big Muslim populations, saw a drop in sales.

See Also: McDonald's Admits Losing Customers as Lower-Income Americans Opt to Cook at Home Instead

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