McDonald's missed 2023 sales goal; global sales fell 4%

Visualize an empty fast food restaurant in the Middle East, in a style reminiscent of a dramatic and grim scene directed by Steven Spielberg. The imag
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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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