McDonald’s to buy its Israel franchise amid Gaza war, global boycott

McDonald’s operator in Israel has agreed to sell its business to the parent corporation to reduce the effects of the Gaza war on its business. 

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

Alonyal has owned and operated McDonald’s in Israel for more than 30 years and currently has 225 restaurants and more than 5,000 employees, McDonald’s said in a statement.

McDonald’s added that the employees in Israel “will be retained on equivalent terms.” The transaction is subject to unspecified conditions and is expected to be closed in the coming months, according to the statement.

The decision follows controversy surrounding McDonald’s connection to Israel amid its war against Hamas in Gaza. From the early days of the conflict, there have been worldwide boycotts against the fast food giant.

In October, McDonald’s Israel posted on social media that it had provided free meals to Israel Defense Forces personnel. Following the boycott drive, the fast food giant reported its first quarterly sales miss in nearly four years during the fourth quarter of 2023.