McDonald’s Corporate Buys Back All 225 Israeli Locations

(NewsWorthy.news) – McDonalds has announced it will buy up all of its 225 franchise restaurants in Israel, having struck a deal with Israeli franchise Alonyal. Alonyal owner and CEO Omri Padan said in a statement that the franchise had proudly brought the “Golden Arches” to Israel’s communities for 30 years.

Alonyal employs more than 5,000 workers across its McDonald’s restaurants throughout the country. The announcement comes weeks after McDonald’s stated that the Gaza conflict had harmed its business. The company added that it is committed to the Israeli market and wanted to ensure a positive experience for both employees and its customers going forward. Terms of the deal have not been disclosed.

The announcement follows boycotts after predominantly Islamic nations such as Pakistan, Kuwait and Malaysia distanced themselves from the company. Days following the October 7th attack just across the border from Gaza, a McDonald’s franchisee announced on social media that it had donated and continued to donate thousands of meals to Israeli Defense Force units. Meals were also donated to Israel’s police, hospitals, rescue forces and residents around the Gaza strip.

McDonald’s CEO Chris Kempczinski commented in January that the conflict had a “meaningful impact” on their markets in the Middle East. Kempczinski added that they were not expecting to see significant improvement in these markets, which included those in Muslim countries, as long as the war was ongoing. The company described the boycott as “ill-founded” and “disheartening”. McDonald’s distanced itself from the controversial decision to provide the IDF with meals following mounting civilian casualties in Gaza, saying the decision had been made independently by the local franchisee.

In response to Alonyal’s announcement it was providing the IDF with meals, franchisees in Egypt, Saudi Arabia and Jordan also distanced themselves from the Israeli franchisee’s decision, and pledged to donate millions of dollars in aid to Palestinians in Gaza. Most of McDonald’s stores worldwide are managed by local franchise operators. The operators essentially act as independent businesses in many ways, setting prices and wages, and when deemed appropriate they make donations and statements at their discretion.