WASHINGTON March 14. 2024 (Saba) - McDonald's lost about seven billion dollars in value in less than a day after its chief financial officer, Ian Borden, announced the continued impact of the boycott in the Arab region and the Muslim world on sales this year.
Since last October, the Arab and Muslim world has witnessed a boycott campaign against companies that are considered supportive of the Zionist entity in its war on the Gaza Strip, including McDonald's.
During Wednesday's trading, McDonald's shares tumbled more than 3%, heading for their biggest daily loss in 5 weeks.
The company's stock fell 3.37 percent, or $9.93, to $284.36 at the time of writing, resulting in a loss of $6.87 billion.
This came after Borden acknowledged that international sales would fall successively in the current quarter as a result of the ongoing conflict in the Middle East and weak demand in China.
Borden told UBS Global Consumer and Retail Conference that sales similar to the first quarter in McDonald's licensed international development markets would be "slightly lower" than in the previous three-month period.
Customers in the Arab and Muslim world were outraged after McDonald's in Israel announced in October that it would provide free meals to Zionist soldiers.
In an attempt to mitigate this anger, some McDonald's branches in the Arab region announced donations for relief in the Gaza Strip.
Last month, McDonald's president and CEO Chris Kempekzynski warned that "misinformation" in the Middle East and elsewhere was hurting sales.
In February, the company did not widely investigate Wall Street's estimates of fourth-quarter sales in the sector, in part because of protests and boycotts against many Western brands over its pro-Israel stance in its more than five-month offensive against the Gaza Strip.
E.M
resource : Saba
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