McDonald's Affected by Israel-Gaza Spread of False Information

McDonald's has acknowledged a significant decline in business as customers in the Middle East and other regions boycott the company due to their perceived support for Israel. CEO Chris Kempczinski addressed the issue in a LinkedIn post, attributing the backlash to misinformation. This is the second instance of a major US company's leader addressing the business impact of the Israel-Gaza conflict. Starbucks has also been affected. Kempczinski stated that McDonald's was experiencing a meaningful negative impact in several Middle Eastern markets and other regions, due to the war and the associated misinformation affecting brands like McDonald's. He added that this perception is disheartening and ill-founded, as McDonald's is represented by local owners in every country, including Muslim countries. McDonald's has thousands of independent businesses operating most of its stores worldwide. While the corporate headquarters has tried to maintain a low profile during the conflict, the brand has still been caught up in the fight. McDonald's Israel gave away thousands of free meals to the Israeli military in the weeks following Hamas' attack on Israel, leading to calls for boycotts of the brand by those upset with Israel's military response. This prompted McDonald's franchise owners in Muslim-majority countries such as Kuwait, Malaysia, and Pakistan to distance themselves from the brand. The tensions and boycotts have escalated recently, with the pro-Palestinian Boycott, Divestment and Sanctions (BDS) officially calling for a boycott of McDonald's. McDonald's Malaysia, backed by a Saudi firm, sued the Malaysia BDS group for $1.3 million, claiming false and defamatory statements that harmed their business. BDS responded by calling on McDonald's to sever ties with its franchisee in Israel and drop the lawsuit in Malaysia. McDonald's declined to comment on the lawsuit and reiterated their stance against violence and hate speech in Kempczinski's post.