McDonald's CEO, Chris Kempczinski, has acknowledged that the ongoing Israel-Hamas war and the associated “misinformation” has had a significant impact on the company's sales in the Middle East and Muslim countries worldwide. In a LinkedIn post, Kempczinski expressed his disappointment and stated that the boycott calls against McDonald's were "disheartening and ill-founded." He emphasized that McDonald's is represented by local owner operators in every country where it operates, including Muslim countries, who work diligently to serve and support their communities while employing thousands of their fellow citizens.

However, the distinction of local ownership was lost on a mob of protesters in Lebanon who ransacked a local McDonald's restaurant. This incident occurred after McDonald's Israel franchises announced that they would be offering free meals to Israeli soldiers involved in military operations in Gaza. McDonald's Israel reported that they had provided thousands of free meals to the Israel Defense Forces, but this move was later renounced by McDonald's franchises in some Muslim countries, highlighting the polarized regional politics that global corporations have to navigate during times of war.

Kempczinski did not disclose the extent of the financial losses suffered by McDonald's as a result of the boycotts. His comments echoed those made by Starbucks CEO, Laxman Narasimhan, who also expressed concern about the impact of protests against the company due to its stance on the Israel-Hamas war. Narasimhan stated that the protests were influenced by misrepresentation on social media of what Starbucks stands for. Starbucks faced boycotts and vandalism of its stores by supporters of Palestine, who accused the company of supporting Israel. At the same time, pro-Israel groups in the US called for a boycott of Starbucks after the Starbucks Workers United expressed support for Hamas' cause.

The boycotts against McDonald's and Starbucks have had significant financial consequences. Starbucks reportedly lost up to $12 billion in value due to the boycotts in the weeks following the outbreak of the war. As for McDonald's, its sales in international markets saw an 8.3% increase in the third quarter of the previous fiscal year. However, this was before the Hamas attack on October 7, which resulted in the deaths of 1,200 Israelis. The impact of the boycotts on McDonald's will likely be revealed when the company reports its fourth-quarter results later this month.

Shares of McDonald's have already been affected, trading lower by 1.3% as of mid-day on Friday. McDonald's, with over 40,275 restaurants across more than 100 countries, reported total annual revenue of $23.18 billion in the previous year. In response to the boycotts, McDonald's Malaysia has taken legal action against the Boycott, Divestment and Sanctions (BDS) Malaysia movement, seeking damages of $1.31 million. The movement is accused of making false and defamatory statements that harmed McDonald's business by linking the fast-food franchise to Israel's "genocidal war against Palestinians in Gaza." BDS Malaysia denies the allegations and has stated that it will let the court decide on the matter.