McDonald’s sales hit over Middle East conflict

We are an affiliate

Newsatw.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.co.uk.“As an Amazon Associate, I earn from qualifying purchases.”

McDonald’s sales took a hit in the latest quarter due to the ongoing turmoil in the Middle East.

It primarily impacted the international development licensed markets and segment whose same store sales increased a slim 0.7%. This small uptick reflected “the impact of the war in the Middle East,” the company said, adding that it’s “monitoring the evolving situation” but anticipates that there will be a continued negative impact on systemwide sales and revenue as long as the war continues. 

TickerSecurityLastChangeChange %
MCDMCDONALD’S CORP.285.97-11.08-3.73%

Shares fell in early trading Monday. 

MCDONALD’S SPINOFF COSMC’S SAW TWICE AS MANY VISITS AS REGULAR RESTAURANT IN FIRST MONTH: REPORT

McDonald's

A McDonald’s restaurant in Louisville, Kentucky, on Jan. 14, 2019. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)

In total, global same-store sales increased 3.4% in the quarter, which was the slowest sales growth in about three years, Reuters reported.

STARBUCKS CEO SAYS ‘MISREPRESENTATION’ FUELING PROTESTS AGAINST COMPANY STANCE ON ISRAEL-HAMAS WAR

CEO Chris Kempczinski had already warned last month that the company’s business in the Middle East was being affected due to the war between Israel and Hamas. 

In a LinkedIn post, Kempczinski wrote that “several markets in the Middle East and some outside the region are experiencing a meaningful business impact due to the war and associated misinformation that is affecting brands like McDonald’s.” 

See also  Kudlow: Speaker Johnson wants to protect America's border security first

Shares of the fast-food giant are down over 3% this year, compared to a nearly 4% rise for the S&P 500. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

California McDonald's restaurant

A McDonald’s on April 28, 2022, in San Leandro, California. (Justin Sullivan/Getty Images / Getty Images)

The company is among other top chains such as Starbucks that have become the target of boycotts over their perceived pro-Israel stance and alleged financial ties to Israel.

TickerSecurityLastChangeChange %
SBUXSTARBUCKS CORP.92.51-0.48-0.52%

Starbucks CEO Laxman Narasimhan said many of its stores have experienced incidents of vandalism as protests fueled by misrepresentation escalated. 

FOX Business’ Michael Dorgan contributed to this report. 

Check Also

Comer uncovers pattern in Biden family business probe: ‘Very concerning’

We are an affiliateNewsatw.com is a participant in the Amazon Services LLC Associates Program, an …

Leave a Reply