McDonald's will buy all 225 restaurants from Israel franchise following pro-Palestinian boycott fallout
Source: CNBC
McDonald’s will buy all 225 restaurants from Israel franchise following pro-Palestinian boycott fallout
PUBLISHED FRI, APR 5 2024 8:33 AM EDT UPDATED 4 HOURS AGO
Natasha Turak
@NATASHATURAK
•“An agreement to sell Alonyal to McDonald’s Corporation has been signed,” McDonald’s said in a statement following months of dramatically decreased revenues in its Middle East market.
•Israel’s McDonald’s franchises have been owned by local company Alonyal Ltd. for more than 30 years.
•Consumers in Arab and Muslim-majority countries have boycotted the brand over what they perceive to be its support for Israel, something the U.S.-based company denies.
McDonald’s signed a deal to purchase all 225 of the restaurants that comprise its Israel franchise, the American fast-food chain announced, following months of dramatically lower sales due to pro-Palestinian boycott action amid the Israel-Hamas war.
The restaurant outlets in Israel have been owned by local licensee Alonyal Ltd., which is owned by Israeli businessman Omri Padan, for more than 30 years.
“An agreement to sell Alonyal to McDonald’s Corporation has been signed,” the McDonald’s statement said Thursday. “Upon completion of the transaction, McDonald’s Corporation will own Alonyal Limited’s restaurants and operations, and employees will be retained on equivalent terms.” The company did not disclose the purchase amount.
McDonald’s reported its first revenue miss in nearly four years in February, hit by weak sales growth in its division that includes the Middle East.
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Read more: https://www.cnbc.com/2024/04/05/israel-boycott-mcdonalds-will-buy-all-225-restaurants-from-franchise.html
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Source: The Guardian
McDonald’s takes over franchise that sparked global boycotts for giving meals to Israeli military
US fast-food chain is buying Israel franchise from Alonyal Ltd, taking back ownership of 225 restaurants in the country
Guardian staff and agencies
Fri 5 Apr 2024 12.41 BST
Last modified on Fri 5 Apr 2024 18.17 BST
McDonald’s is buying its 30-year-old Israel franchise from Alonyal Ltd, taking back ownership of 225 restaurants in the country that employ more than 5,000 people, the companies said on Thursday.
The US fast-food chain has been subject to boycotts and protests since Alonyal announced shortly after the 7 October attack by Palestinian Islamist group Hamas that it would be donating free meals to Israeli military.
McDonald’s is a global chain but its franchises are often owned locally and operate autonomously.
Its CEO, Chris Kempczinski, said in January the company had seen “meaningful impact” in several markets in the Middle East and some outside the region due to the Israel-Hamas conflict.
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Read more: https://www.theguardian.com/business/2024/apr/05/mcdonalds-israel-franchise-boycott
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