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McDonald's Faces Sales Decline Amidst Middle East Boycotts

FILE - A McDonald's sign is displayed at a McDonald's restaurant in East Palo Alto, Calif., Friday, April 20, 2012. McDonald's reports earnings Monday, Feb. 5, 2024. (AP Photo/Paul Sakuma, File)

McDonald's, the renowned fast-food chain, experienced a slight setback in the last quarter of the year due to the war in Gaza, causing a dip in sales across multiple markets. Despite a generally positive year, the impact of the conflict had a tangible effect on McDonald's global same-store sales in the October-December period, with a rise of 3.4%, falling short of the expected 4.7% increase predicted by Wall Street analysts.

The Middle East market, in particular, experienced customer discontent after McDonald's Israel, operated by a local franchisee, announced its decision in October to provide free meals to Israeli soldiers. In response, several franchisees, including McDonald's Oman, pledged donations to relief efforts in Gaza. These actions resulted in customer boycotts and protests, leading some McDonald's locations to temporarily close or limit their operating hours.

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