McDonald’s has faced considerable scrutiny and a global boycott campaign due to its support for franchises linked to Israel, in light of the ongoing war in the Gaza Strip.

McDonald’s has reported its first global sales decline in over three years with a 1% drop in outlets open for at least a year during the April-June period, marking the first decline since the pandemic.

Chris Kempczinski, Chief Executive Officer of the fast-food giant, attributed the drop to consumers becoming “more discerning with their spending.”

“We are seeing trade down, but what we’re seeing is that the loss of the low-income consumers is greater than the trade-down benefit,” he said in an investor call.

“You’re seeing with that low-income consumer, in many cases, they’re dropping out of the market, eating at home and finding other ways to economise,” Kempczinski added. 

To offset these pressures, the famed chain says it will continue to promote discounted offers, such as its “free fry Fridays,” with plans for a future U.S. Value platform, McDonald’s President Joe Erlinger said to analysts as reported by PYMNTS. 

Yet, the company failed to address the global boycott against it, which erupted after McDonald’s faced intense backlash. 

The controversy began when its Israel-based franchise distributed thousands of free meals to members of the Israeli military. 

The gesture, perceived by many as endorsing Israel’s military actions in Gaza, has sparked widespread calls for a boycott of McDonald’s, extending to other Western corporations, including Starbucks and Coca-Cola, which have also faced protests and boycotts from anti-Israeli campaigners.

In January, months after the war, Kempczinski acknowledged the impact in a LinkedIn post, blaming the backlash on “misinformation.”

“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,” Kempczinski wrote in the post. 

He added, “In every country where we operate, including in Muslim countries, McDonald’s is proudly represented by local owner operators.”

McDonald’s Qatar 

In October, following the outbreak of the war, McDonald’s Qatar announced a QAR 1 million donation for humanitarian aid in Gaza in response to the gifting of Israel’s branch.

In a statement sent to Doha News, the 100% locally owned and operated enterprise announced the #For_Palestine campaign to provide “urgent food aid, water, shelter and care” to meet the basic needs and provide relief to the Palestinian people of Gaza.

“In this regard, McDonald’s Qatar is donating an amount of 1,000,000 riyals to contribute to the relief efforts of the people of Gaza, may God help them,” the statement added.

McDonald’s in Qatar is fully and locally owned by Al Mana Restaurant and Food Company, W.L.L.

McDonald’s Qatar first opened in 1995 and now boasts a total of 74 restaurants across the Gulf nation.

Despite the call to action, many locals in Qatar have flocked to other fast food establishments while boycotting McDonald’s Qatar.

Restaurants like Junior’s have gained popularity due to their similar concept, offering a look and taste comparable to McDonald’s.