Effects of Israel Boycotts on Sales of Well-Known Brands: Record Declines
Israeli Attacks on Gaza Impact Sales at McDonald’s, Starbucks, and KFC
The recent Israeli attacks on Gaza have had a significant impact on sales at popular quick-service restaurant chains such as McDonald’s, Starbucks, and KFC. According to reports, McDonald’s saw a 1 percent decrease in sales in the second quarter of 2024, marking the first decline since 2020.
This drop in sales not only affected McDonald’s, but also had an impact on the company’s revenue and profit. In the second quarter, McDonald’s revenue fell below market expectations at $6.49 billion, while net income suffered a 12 percent decrease.
Starbucks and KFC were also among the brands that experienced a decline in sales due to the Israel boycott. The US coffee chain, Starbucks, faced a drop in revenues in the first quarter of 2024 as a result of the boycott in the Middle East and Asian countries. Revenues for Starbucks decreased by 2 percent year-on-year to $8.6 billion in the January-March period.
Furthermore, the popular restaurant chain KFC had to temporarily close 108 branches in Malaysia following an anti-Israel boycott in April. This boycott had a direct impact on the company’s operations in the region.
Overall, the Israeli attacks on Gaza have not only had a devastating impact on the lives of people in the region, but also on the business operations of major global brands. The effects of this boycott are being felt across the world, as companies struggle to navigate the complex political landscape.
