Boycotts linked to the Israel-Gaza conflict significantly impacted McDonald's sales in the Middle East.
Overall sales growth fell short of expectations, driven by weaker international performance and US customer behavior.
McDonald's emphasizes its commitment to affected communities and inclusivity.
The ongoing conflict poses a challenge for the company's international growth.
Fast food giant McDonald's fell short of sales expectations, partly due to boycotts stemming from its perceived support for Israel during the recent conflict. This marks the company's first quarterly miss in nearly four years.
International sales, particularly in the Middle East, were significantly impacted.
Boycotts and protests, fueled by anger over the Israel-Gaza conflict, drove down sales in several key markets.
Franchise owners in Muslim-majority countries distanced themselves from the company, further amplifying the issue.
While McDonald's saw overall sales growth, it fell short of analysts' expectations and was significantly lower than the previous quarter.
The company attributed this to weaker growth in its international business and reduced spending by lower-income customers in the US.
Despite the challenges, McDonald's remains focused on supporting communities in the affected regions and emphasizes its commitment to inclusivity.
However, the ongoing conflict and resulting boycotts pose a significant hurdle for the company's international growth.