McDonald’s to buy Israeli franchise amid deepening Gaza crisis

McDonald’s Corporation has agreed to purchase its 30-year-old Israeli franchise as the Gaza crisis deepens further. 

McDonald’s will take ownership of 225 restaurants that employ more than 5,000 employees from Alonyal Limited, the owner and operator of the franchise in Israel. 

“For more than 30 years, Alonyal Limited has been proud to bring the Golden Arches to Israel and serve our communities,” said Omri Padan, CEO and owner of Alonyal Limited.

McDonald’s said that upon completion of the transaction, it will own Alonyal Limited’s restaurants and operations, while the employees will be retained on equivalent terms.

Contingent on certain terms, the deal is expected to close out in the coming months.

The transaction value has not been disclosed. 

Jo Sempels, president of international developmental licensed markets at McDonald’s said that the company remains committed to the Israeli market.

McDonald’s operates 40,000 locations in more than 100 countries, with roughly 95% of its restaurants globally owned and operated by independent local business owners.

The global chain has experienced consumer outrage and faltering sales across the Middle East since its Israeli franchise announced free meals for Israeli soldiers in the wake of the Gaza conflict. 

The company’s CEO and president Chris Kempczinski said in January that several Middle Eastern markets and some outside the region were experiencing a “meaningful business impact” due to the war and associated misinformation. 

Sales growth for the company's international developmental licensed markets - covering more than 75 countries including the Middle East, India, Malaysia, Indonesia, and China - stood at 0.7 per cent for the fourth quarter of 2023.