McDonald's sales hit over Middle East conflict
McDonald's shares are down over 3% this year
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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. | 298.64 | -2.98 | -0.99% |
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."
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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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. | 98.80 | -1.51 | -1.51% |
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.