WASHINGTON —
McDonald’s reported its first quarterly sales
miss in nearly four years due to weak international growth, as per BBC News.
The fast-food chain failed to meet a key sales target, partly attributed to
customers boycotting the firm over perceived support for Israel.
اضافة اعلان
The firm reported the ‘meaningful impact’ of Israel’s
war on Gaza on the overseas
markets' performance in the fourth quarter of 2023. Global sales grew by just under four
percent, down from 8.8 percent in the previous quarter, and below its annual
average. Furthermore, its
branch covering the Middle East, China, and India saw only 0.7 percent growth,
well below expectations.
On Monday, CEO Chris Kempczinski noted significant impacts
in Malaysia, Indonesia, and France, attributing the slowdown, particularly in
the Middle East, to the fourth-quarter revenue miss. This led to a four percent
drop in shares after the announcement.
The franchise system, covering over 40,000 stores globally,
faced challenges amid backlash after its Israeli franchise provided thousands
of free meals to
Israeli Occupation Forces (IOF), prompting franchise owners in
Muslim-majority countries such as Kuwait, Malaysia, and Pakistan to put out
statements distancing themselves from the firm.
"So long as this war is going on... we are not
expecting to see any significant improvement [in these markets],"
Kempczinski said.
Notably,
McDonald’s, along with Starbucks and Coca-Cola,
faces boycotts by
pro-Palestinian campaigners. The firm’s US business saw weaker growth due to
lower-income customers opting for cheaper items. Recently, Starbucks also cut
its sales forecast, citing fewer customers in the Middle East.
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