McDonald's Corporation reported a shortfall in quarterly profits, missing its target for the first time in two years as it faces a global boycott sparked by the ongoing conflict in the Gaza Strip. The announcement came on Tuesday, highlighting the challenges faced by the fast-food giant in light of international disputes.
According to a statement from the company, despite achieving a 1.9 percent increase in global comparable sales during the first quarter, the impact of the Gaza conflict has significantly affected its market performance, especially in regions involved in the conflict. The statement elaborated that while there was positive sales growth in the U.S. and some international markets, sales were adversely affected in the International Developmental Licensed Markets segment due to the conflict in the Middle East. The call for a boycott began after Alonyal Limited, which operates McDonald's in Israel, distributed thousands of free meals to Israeli forces involved in actions in Gaza, resulting in widespread casualties. McDonald's CEO Chris Kempczinski remarked earlier this year that the ongoing conflict is negatively impacting the brand and reducing sales in Muslim-majority countries.