McDonald’s Buys All Of Its Israeli Franchise Restaurants Amid Israel-Hamas War

McDonald’s has decided to buy every franchise store in Israel amid the chaos of the Middle East war.

According to CNN, the fast food giant sealed an agreement to remove hundreds of stores from the area as the Israel-Hamas conflict continues.

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McDonald’s Buys Them All Back
The restaurant chain reportedly announced on Thursday that it will buy 225 franchise stores in Israel. Local franchisees run the majority of Mickey Dee’s stores.

The billion-dollar brand previously stated the Israel-Hamas war was causing a decline in sales. The CEO, Chris Kempczinski, stated McDonald’s was undergoing a “meaningful business impact.”

The company reportedly reached an agreement with the Israeli franchise Alonyal, which is run by CEO Omri Padan. McDonald’s will purchase every brick-and-mortar in the country. The transfer of ownership will be completed in the coming months. The details of the deal have not been made public.

The CEO stated they were “proud to bring the Golden Arches to Israel and serve our communities.”

The Israeli restaurants employ more than 5,000 individuals. The brand plans to retain all current staff. McDonald’s stated it “remains committed to the Israeli market and to ensuring positive employee and customer experience in the market going forward.”

The Impact Of The Wwar
After Hamas militants killed roughly 1,200 Israeli civilians and soldiers in addition to kidnapping 200 more on Oct. 7, Alonyal began donating free meals to the Israeli military. In addition, they offered discounts on food items. Other franchise groups in Kuwait and Pakistan wanted no parts and quickly distanced themselves from Alonyal.

In October 2023, a McDonald’s spokesperson told ABC News their goal was to ensure each employee was safe. Additionally, the company donated $1 million in total to The World Food Program and Red Cross — $500,000 to each.

In addition, locals began boycotting the fast-food joint. However, Kempczinski says the protests have only moderately hurt the brand.

McDonald’s isn’t the only US company that has faced boycotts due to its alleged support for Israel. Starbucks has also been targeted by former patrons, per ABC News.

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