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McDonald’s sales hit over Middle East conflict

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McDonald’s sales hit over Middle East conflict

McDonald’s sales took a hit in the latest quarter due to the ongoing turmoil in the Middle East.

It primarily impacted the international development licensed markets and segment whose same store sales increased a slim 0.7%. This small uptick reflected “the impact of the war in the Middle East,” the company said, adding that it’s “monitoring the evolving situation” but anticipates that there will be a continued negative impact on systemwide sales and revenue as long as the war continues. 

Ticker Security Last Change Change %
MCD MCDONALD’S CORP. 297.05 -1.03 -0.35%

Shares fell in early trading Monday. 

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A McDonald’s restaurant in Louisville, Kentucky, on Jan. 14, 2019. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)

In total, global same-store sales increased 3.4% in the quarter, which was the slowest sales growth in about three years, Reuters reported.

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CEO Chris Kempczinski had already warned last month that the company’s business in the Middle East was being affected due to the war between Israel and Hamas. 

In a LinkedIn post, Kempczinski wrote that “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.” 

Shares of the fast-food giant are down over 3% this year, compared to a nearly 4% rise for the S&P 500. 

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California McDonald's restaurant

A McDonald’s on April 28, 2022, in San Leandro, California. (Justin Sullivan/Getty Images / Getty Images)

The company is among other top chains such as Starbucks that have become the target of boycotts over their perceived pro-Israel stance and alleged financial ties to Israel.

Ticker Security Last Change Change %
SBUX STARBUCKS CORP. 92.99 -0.38 -0.41%

Starbucks CEO Laxman Narasimhan said many of its stores have experienced incidents of vandalism as protests fueled by misrepresentation escalated. 

FOX Business’ Michael Dorgan contributed to this report. 

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