Why is McDonald's buying back 225 restaurants in Israel?

McDonald’s will buy back all of its restaurants in Israel after sales have plummeted due to a customer boycott.

The fast food chain has been criticised for its alleged support for Israel after it gave away free meals to Israeli soldiers.

They said the Israel-Hamas war had ‘meaningfully impacted’ their business as the firm missed their quarterly sales target in nearly four years.

A deal has been reached with franchisee Alonyal, which has operated McDonald’s restaurants in Israel for more than 30 years, to return 225 branches.

Widespread protests impacted sales in the Middle East, Indonesia and France in particular.

The company said yesterday: ‘McDonald’s remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward.’

They added the restaurants, operations and employees in Israel would be retained ‘on equivalent terms’.

McDonald’s chief executive Chris Kempczinski blamed the boycott on ‘misinformation’ and is ‘disheartening and ill-founded’.

Protesters are putting stickers that read 'Boycott Israel' on a McDonald's as hundreds of people are demonstrating in Toulouse, France, in support of Gazans, the Gaza Strip, and more generally for Palestine. The demonstration is taking place in Toulouse, France, on January 13, 2024. (Photo by Alain Pitton/NurPhoto via Getty Images) — Protesters are putting stickers that read ‘Boycott Israel’ on a McDonald’s as hundreds of people are demonstrating in Toulouse, France (Picture: Alain Pitton/NurPhoto via Getty Images)

Eurovision 2024 also faces boycotts as musicians are being encouraged to not participate due to Israel’s involvement.

Olly Alexander, who will represent the UK in May, responded to calls for him to boycott.

Shared on Friday morning, the statement read: ‘We want to begin by acknowledging the privilege of taking part in Eurovision.

Mandatory Credit: Photo by Shady Alassar/ZUMA Press Wire/REX/Shutterstock (14206439ah) Dozens of Turkish people were seen in front of a McDonald's restaurant chanting phrases to boycott its products, expressing their anger in support of the Israeli army. The war on Gaza, Istanbul, Turkey - 12 Nov 2023 — Dozens of Turkish people were seen in front of a McDonald’s restaurant chanting phrases to boycott its products (Picture: Shady Alassar/ZUMA Press Wire/REX/Shutterstock)

‘We stand united against all forms of hate, including antisemitism and islamophobia.’

It continued: ‘We firmly believe in the unifying power of music, enabling people to transcend differences and foster meaningful conversations and connections.

‘We feel it is our duty to create and uphold this space, with a strong hope that it will inspire greater compassion and empathy.’