2024-03-13 19:57:22
McDonald’s lost regarding $7 billion of its value within hours following its CFO, Ian Borden, announced on Wednesday that the boycott in the Arab region and the Islamic world would continue to affect sales during the current year.
Since last October, the Arab and Islamic worlds have witnessed a boycott campaign once morest companies considered supportive of Israel in its war on the Gaza Strip, including McDonald’s.
During Wednesday’s trading, McDonald’s shares fell by more than 3%, heading towards recording the largest daily loss in 5 weeks.
The company’s shares fell 3.37%, or $9.93, to $284.36 at the time of writing, resulting in the company losing $6.87 billion.
This came following Borden acknowledged that international sales would decline successively in the current quarter as a result of the continuing conflict in the Middle East and weak demand in China.
First-quarter comparable sales in McDonald’s International Developmental Markets franchised segment will be “slightly lower” than the previous three-month period, Borden said at the UBS Global Consumer and Retail Conference.
The company’s successive losses, the company’s companions to the most widespread restaurant chain in the world, are facing troubles as boycott campaigns once morest it continue.
Customers in the Arab and Islamic world were angry following McDonald’s in Israel announced last October that it would provide free meals to Israeli soldiers.
In an attempt to alleviate this anger, some McDonald’s branches in the Arab region announced donations for Gaza Strip relief.
Last month, McDonald’s President and CEO Chris Kempczinski warned that “misinformation” in the Middle East and elsewhere was hurting sales.
Last February, the company did not achieve widely accepted Wall Street estimates for fourth-quarter sales in this sector, partly due to protests and boycott campaigns once morest many Western brands due to its pro-Israel stance in its aggression that it has been waging on the Gaza Strip for more than 5 months.
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