Mikkel Rosenvold
12 weeks ago

McDonald's Buys Back Israeli Restuarants amid Hamas War

McDonald's takes a significant step by acquiring all 225 of its franchise restaurants in Israel from Alonyal Limited, amidst the ongoing Israel-Hamas conflict.

In an impactful business maneuver, McDonald's has announced its acquisition of all its franchise outlets in Israel. This decision comes in the wake of the company revealing how the Israel-Hamas war adversely affected its operations.

The fast-food behemoth finalized a deal with Alonyal Limited, taking over the latter’s McDonald's franchise restaurants across Israel. Omri Padan, Alonyal's CEO, voiced his pride in contributing to McDonald's growth in Israel for over three decades, highlighting the employment of more than 5,000 individuals across these outlets.

McDonald's statement reiterates its dedication to the Israeli market, emphasizing the importance of a positive experience for both employees and customers. However, the financial terms of the acquisition remain under wraps.

Globally, McDonald's operates through local franchises, granting them autonomy over various operational aspects such as pricing and wages. This model has propelled McDonald's to international success, boasting over 41,000 restaurants worldwide.

However, this operational independence limits McDonald's ability to dictate franchise actions during crises. The October 7 attacks by Hamas militants, which resulted in the loss of over 1,200 Israeli lives, saw Alonyal offering discounts to local soldiers, prompting distancing by McDonald’s franchises in Kuwait and Pakistan.

The regional unrest has led to boycotts against McDonald's in several Middle Eastern markets. CEO Chris Kempczinski admitted the significant impact of the conflict on business operations, a sentiment echoed in McDonald’s latest earnings report. Despite these challenges, Kempczinski highlighted the company's neutral stance, emphasizing its representation by local operators in every market, including those with a Muslim majority.

Disclaimer

The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

More News

1 week ago Analysis: New Debate Rules Favor Biden New rules announced for the June 27th debate between Joe Biden and Donald Trump serves the President well.
1 week ago StanChart Becomes Among the First Global Banks to Launch Spot Crypto Trading StanChart breaks new ground by launching spot trading for Bitcoin and Ether, leading the charge among global banks in the cryptocurrency space.
1 week ago Crypto, Currently: June 21, 2024 - Market Bears Down on Major Cryptos Daily update on the five cryptocurrencies, we consider the most interesting right now.
1 week ago FX Daily: June 21, 2024 – Forex Market Update Daily update from the foreign exchange markets.
1 week ago Amazon Plans To Make Largest Reduction of Plastic Packaging in North America To Date Amazon's response to mounting criticism over its plastic waste with a new reduction plan.
1 week ago Ex-OpenAI Chief Scientist Ilya Sutskever Launches New Company Amid Criticism of ChatGPT Parent's Board Appointments Ilya Sutskever, former chief scientist at OpenAI, has co-founded a new company, Safe Superintelligence Inc., amidst ongoing scrutiny of OpenAI’s recent board appointments.
1 week ago FX Daily: June 20, 2024 - Mixed Movements in Global Currency Markets Daily update from the foreign exchange markets.