Anatolia Agency said that the consequences of the boycott of companies supporting Israel have become more evident in the wake of the war waged on the Gaza Strip, as many international companies targeted by the boycott are seeing a significant deterioration in their financial condition.
biggest victim of boycott
One of the biggest victims of the global boycott is American fast food giant McDonald's. Despite a modest 8 percent increase in revenue in the fourth quarter of 2023 to $6.41 billion, the company fell short of market expectations of $6.45 billion, according to Anadolu.
McDonald's attributed the setback to a slower 0.7% growth in sales in its “International Growth Markets” division, which mainly covers the Middle East, China and India. The company aims to achieve 5.5% growth in this division between December and January.
While the company's CEO Chris Kempczinski acknowledged a decline in sales in Muslim-majority countries in the Middle East, including Malaysia and Indonesia, and expressed hope for an improvement after the conflict in Gaza stops.
It is noteworthy that McDonald's had to face angry reactions after announcing its support to Israel and distributing free food to Israeli soldiers, after which widespread protests started. But McDonald's Turkey took a different stance, as it pledged to provide $1 million in humanitarian aid to support war victims in Gaza, especially women, children and the elderly.
Starbucks…acceptance of influence
According to Anadolu, the famous American coffee chain Starbucks also felt the consequences of the boycott, especially in the Middle East. Its CEO, Lakshman Narasimhan, talked about weak sales and traffic at its cafes in the United States due to the boycott. Despite a healthy 8 percent increase in revenue to $9.4 billion in the last quarter of 2023, Starbucks fell short of expectations. The market prompted the company to review its annual sales growth targets, lowering them by about 4-6 percent, Anadolu said.
Domino's Pizza.. sales decline
Domino's Pizza, another US giant, has suffered a direct hit from the boycott, particularly in Asia, where store sales fell 8.9 percent in the second half of last year. According to the agency, photos appearing to appear to be the company distributing free food to Israeli soldiers circulated on social media, causing widespread outrage.
Anatolia quoted company general manager Donald Jeffrey Megg as acknowledging the impact of the boycott on the brand's sales in Asia.
KFC and Pizza Hut
Yum, the parent company of KFC, Pizza Hut and Taco Bell, also saw lower-than-expected revenue in the fourth quarter of 2023. With total revenue reaching $2.04 billion, an increase of 1 percent year over year, this was below market expectations. Set at $2.1 billion.
According to Anadolu, KFC and Pizza Hut sales in the Middle East saw a decline during the last quarter of 2023, as KFC's sales fell by 5 percent and Pizza Hut's by 3 percent. Yum CEO David Gibbs blamed “the ongoing conflict in the Middle East” for the decline in sales, the agency reported.
While the impact of the boycott is evident on various global companies, the process of exposing their balance sheets is ongoing. The international community is keeping a close eye on these companies to deal with the complexities of geopolitical tensions amid the ongoing war in the Middle East.