McDonald's lost $7 billion in value within hours after announcing the continued impact of the boycott on sales - MAAAL NEWS (2024)

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McDonald's lost $7 billion in value within hours after announcing the continued impact of the boycott on sales - MAAAL NEWS? ›

McDonald's lost $7 billion of its value within hours after its financial director announced the continued impact of the boycott in the Middle East on sales during the current year. According to CNBC, McDonald's shares fell by more than 3%, on track to record its largest daily loss in 5 weeks.

A boycott sparked by the war in Gaza helped contribute to McDonald's first quarterly decline in same-store sales since the COVID outbreak in early 2020. On Monday, the fast-food company known for its hamburgers and french fries reported a 1% decline in revenue across all its businesses.

The boycotts began in October after McDonald's local Israeli franchisee announced it was providing free meals for Israeli troops involved in the war in Gaza. McDonald's has tried to limit the fallout.

McDonald's is one of many Western franchises that is being targeted by a boycott campaign over their support for the Israeli Occupation Forces (IOF). Mar. 15, 2024 8:51 p.m.

April 30 (Reuters) - McDonald's (MCD. N) , opens new tab missed quarterly profit estimates for the first time in two years as budget-conscious consumers looked past its offers and the Middle East conflict weighed on the burger chain's international sales.

The American restaurant chain McDonald's has been criticised for numerous aspects of its business, including the health effects of its products, its treatment of employees, the environmental impact of its operations, and other business practices.

On Thursday, the company said: "McDonald's remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward." It also thanked Alonyal for building the brand in Israel.

A boycott was sparked after Muslim-majority countries such as Kuwait, Malaysia and Pakistan issued statements distancing themselves from the firm for what they saw as support of Israel. Mr Padan, however, is not new to controversy related to the Israeli-Palestinian conflict.

As a traditional fast food restaurant, McDonald's has been accused of serving unhealthy food and offering poor service. McDonald's and its food have been under scrutiny. For example, food like burgers and fries are high in fat and salt and contain low nutritional value.

McDonald's global sales fell for the first time in nearly four years in the second quarter as inflation-weary consumers skipped eating out or chose cheaper options. The company said it expects same-store sales to be down for the next few quarters and is working on fixes like meal deals and new menu items.

Did McDonald's CEO warn of hit from boycotts? ›

The CEO of McDonald's, Chris Kempczinski, has said the fast food chain was seeing a “meaningful” hit to business, as customers boycott the firm in the Middle East for its perceived support of Israel.

McDonald's will buy back all of its Israeli restaurants after global sales slumped due to a boycott of the brand over its perceived support for Israel in its war against Hamas in Gaza. The fast-food giant uses a franchise system which means that individual operators are licensed to run outlets and employ staff.

McDonald's is owned by different shareholders, as it's a publicly traded company. According to CNN Business reports, most of this company's owners are institutional investors, who make up 70.14% of the outstanding shares. Individual owners only make up about 0.31%.

McDonald's has taken a hit from boycotts related to the war in the Middle East, warning on Tuesday of revenue weakness “as long as the war continues.” Executives have also said that low-income consumers in the US, an important part of the company's customer base, are pulling back.

It was the first time since 2020 that quarterly same-store sales have fallen in that segment. The boycotts began in October, after the McDonald's franchisee in Israel announced it was providing free meals for Israeli troops involved in the war in Gaza. McDonald's has tried to limit the fallout.

McDonald's is losing customers to inflation McDonald's announced a drop in sales for the first time since 2020, when restaurants closed because of the pandemic. This time, it's because people are feeling the pinch of inflation.

McDonald's global same-stores fell for the first time in nearly four years in the second quarter as inflation-weary consumers skipped eating out or chose cheaper options. The company said it's working on fixes, like meal deals and new menu items, but it expects same-store sales to be down for the next few quarters.

McDonald's lost a European Union legal battle to keep its "Big Mac" trademark beyond its iconic hamburgers in a ruling from the EU General Court today. The Goliath of the fast food world lost out to a complaint from Supermac's, a smaller Irish chain as famous for its fish and chips as its burgers.

McDonald's revenue for the quarter ending June 30, 2024 was $6.490B, a 0.12% decline year-over-year. McDonald's revenue for the twelve months ending June 30, 2024 was $25.757B, a 6.46% increase year-over-year.

The brothers astonishingly agreed to a “handshake” deal whereby they would receive royalties of 1% of the revenues Kroc would make, in perpetuity. Unsurprisingly, this handshake deal was never honoured and the brothers were not able to prove it.