McDonald’s records largest decline in global sales in 4 years amid boycott

McDonald’s reported its largest decline in global sales in four years, a shocking development for the franchise due to the boycott of pro-Israel brands and rising food costs worldwide, despite attempts to lure customer with value meal offers.

According to the Guardian report, increasing food costs have led consumers to avoid fast food chains, a trend observed in the US, China, and Europe.

Despite efforts to win back customers through value meals and other discounted offers, the chain struggled to retain its consumer base. 

In 2024, McDonald’s faced two consecutive periods of sales decline since the COVID-19 pandemic began in 2020.

The decline in consumer spending resulted in a 1% decrease in sales from April to June, followed by a 1.5% drop between July and September, exceeding experts' predictions for the downturn.

Net profit fell by 3% to $2.3 billion. While the US recorded a slight sales increase of 0.3%, international markets saw a decline of 2.1%, with France and the UK consistently reporting slow sales.

Licensed restaurants operating under local partners also experienced a 3.5% drop in sales, exacerbated by sluggish consumer spending in China and the Middle East amid the ongoing boycott of pro-Israel brands.

In April, the US company said it reached an agreement with Alonyal Limited, the operator of McDonald’s in Israel, to buy its restaurants and operations.

Following the attack on Israel by Hamas on October 7, and the relentless atrocities of Israel Defense Forces (IDF), McDonald's franchise said on social media that it had "donated and continues to donate tens of thousands of meals to IDF units, the police, hospitals, residents around the strip and all rescue forces".

Videos showing IDF troops eating McDonald's after bombing Palestinians also went viral on social media, which further fueled calls for a boycott of the brand.

However, Israel’s war on Gaza had “meaningfully impacted” its sales, particularly in the Middle East and Muslim-majority countries like Pakistan, Indonesia and Malaysia.