Due to the effects of the Gaza War and other factors, McDonald's financial results fell below expectations (French)

McDonald's ended a year full of challenges at a time when it lost a large portion of its sales in Middle Eastern markets due to boycott campaigns against the backdrop of the Israeli war on Gaza.

The company announced today, Monday, that it had not achieved its targeted sales for the first time in nearly 4 years during the past quarter, affected by weak sales growth in its businesses in the Middle East, China and India.

The fast food giant is among several Western brands that have witnessed protests and boycott campaigns against it due to its pro-Israel stances in its war on Gaza.

The brand's sales in international development markets licensed by McDonald's increased 0.7% in the past quarter, which is much lower than expectations for 5.5% growth, according to data from the London Stock Exchange Group.

As the fast food giant faces these challenges, McDonald's is closely monitoring the developments of the situation in the Middle East, recognizing the ongoing negative impact on sales and revenues system-wide as long as the conflict continues, according to Yahoo Finance.

The company's CEO, Chris Kempczinski, in statements to Reuters earlier, highlighted the impact of the Israeli war on Gaza on the results, saying: "The effects of the war on the continuity of profits will be our biggest concern... It seems that this will be a problem that will continue during the next quarter or perhaps even two." .

Chris Kempczinski said last month that a number of markets in the Middle East and others outside the region are experiencing a “significant impact on business” due to the conflict between the Islamic Resistance Movement (Hamas) and Israel, in addition to “misinformation” about the brand.

McDonald's global store sales rose 3.4% in the fourth quarter, contrary to estimates that expected a 4.9% increase.

The quarter's results represent the slowest sales growth in nearly 3 years.

Despite the decline in sales, the company reported adjusted earnings of $2.95 per share, beating estimates of $2.82 per share.


The Israeli war on Gaza sparked protests and boycott campaigns against Western brands accused of supporting and endorsing Israel, including McDonald's.

Brian Mulberry, a client portfolio manager at Zacks Investment Management, which owns McDonald's shares, expressed concern: "It will take some time for results to return in the Middle East."

Consumer spending challenges in China, McDonald's second-largest market, contributed to this decline, despite government support measures.

In addition to the impact in the Middle East, McDonald's business in the United States has shown signs of weakness.

McDonald's stores in the United States saw a decline of 13% last October, followed by declines of 4.4% and 4.9% in November and December, respectively.

Source: Al Jazeera + agencies + websites