The conflict between Israel and Palestinian militants in Gaza is hurting McDonald’s and Starbuck’s sales in the Middle East.
The company’s fourth-quarter revenues, which were released on Monday, were below market expectations, with the burger giant citing the impact of the conflict in the Middle East.
Also citing the Gaza conflict, Starbucks says it missed Wall Street revenue forecasts in the fourth quarter of 2023 amid a decline in domestic and international sales. It admitted last week that boycotts had not only hurt its sales in the Middle East but also in the US.
McDonald’s doesn’t expect its Middle Eastern sales to recover until the war has ended.
RT reports: Sales growth in the licensed franchise markets was also weaker than expected. McDonald’s shares fell nearly 4% following the report.
Another American company, coffee franchise Starbucks, also revealed last week that it missed Wall Street revenue forecasts in the fourth quarter of 2023 amid a decline in domestic and international sales. The coffeehouse chain also cited the impact of the conflict in Gaza, as well as increased discounting by rivals in overseas markets.
The two restaurant giants are among several Western brands that have seen boycott campaigns against them over their perceived pro-Israeli stance.
McDonald’s said the company saw weaker sales in majority-Muslim countries, like Malaysia and Indonesia, and in France, which has the largest Muslim population in Western Europe. McDonald’s did not note any effect on its domestic sales.