McDonald’s CEO breaks silence on ‘disheartening’ boycott as fast food giant sees major losses in multiple countries
THE CEO of McDonald's has spoken out again on the months-long boycott that has cost major losses to the chain.
The fast food giant released its 2023 report on Monday, revealing that sales in its licensed markets business only increased by 0.7% in the year's last quarter.
McDonald's shared an overall sales growth of 3.4%, per the report and said that the low 0.7% figure was due to tensions in the Middle East.
"Segment performance reflected positive comparable sales in all geographic regions, with the exception of the Middle East, which was impacted by the war in the region," the report reads.
CEO Chris Kempszinski said during Monday's earnings call that the company is experiencing "the most pronounced impact" in the Middle East, and that the numbers aren't expected to improve anytime soon.
"Also, as we said in our prepared remarks, our outlook is, so long as this conflict, this war is going on, we’re not making any plans, we’re not expecting to see any significant improvement in this,” Kempczinski told investors, according to The Hill.
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“It’s a human tragedy what’s going on, and I think that that does weigh on brands like ours.”
McDonald's has faced boycotts since the burger chain was accused of supporting Israel in its conflict with Palestinian militant group Hamas.
Kempszinski said in a post on LinkedIn last month that the idea that the company chose a side in the conflict was "disheartening and ill-founded."
"In every country where we operate, including in Muslim countries, McDonald's is proudly represented by local owner operators who work tirelessly to serve and support their communities while employing thousands of their fellow citizens," he wrote in the post.
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The CEO said the company stands with "the communities and families impacted by the war in the Middle East.
"We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone," he wrote.
McDonald's low sales numbers come as the chain is already under fire for its high prices after an $18 Big Mac combo and seven-dollar Egg McMuffin were reported in Connecticut.
As customers have been furious to find inflated combo prices on menus across America, Kempszinski addressed the outrage Monday by promising that the company will pay more attention to "affordability" in 2024.
Kempszinski also said that customers have stopped eating at McDonald's as inflation has raised prices.
"Eating at home has become more affordable," the CEO said.
"The battleground is certainly with that low-income consumer."