McDonald’s is to buy back 225 of its restaurants in Israel

McDonald’s has decided to repurchase 225 of its eateries in Israel after blaming a decline in sales on a boycott following the Israel-Hamas conflict.

The US business announced that it has reached an agreement to purchase the eateries from Israeli franchise Alonyal, which has been running the chain’s locations in the nation for more than 30 years.

McDonald’s will regain ownership of 225 restaurants with over 5,000 employees as a result of the agreement. Terms weren’t made clear.

What McDonald’s say?

Although McDonald’s is a worldwide brand, its franchises frequently have local ownership and run independently.

According to statements made by its CEO Chris Kempczinski in January, the Israel-Hamas war has had a “meaningful impact” on the company in a number of Middle Eastern and international markets.

Source: Forbes

“International Developmental Licensed Markets President Jo Sempels stated on Thursday that McDonald’s is still dedicated to the Israeli market and to providing a positive experience for both customers and employees in the market moving forward.”

According to Omri Padan, CEO and owner of Alonyal, McDonald’s would acquire Alonyal’s stores and operations upon the completion of the deal in the upcoming months while keeping its workforce.
The specifics of the transaction were not disclosed by the companies.

A boycott effort against Starbucks (SBUX.O), a significant Western fast food business, has also been launched due to its suspected financial ties to Israel and perceived pro-Israeli position.

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