McDonald's profits rise despite weak Middle East sales

Earlier this month, the fast food chain agreed to acquire Alonyal, which owns 225 McDonald's restaurants in Israel which have been hit by calls for a boycott

By AFP

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Photo: AFP
Photo: AFP

Published: Tue 30 Apr 2024, 5:30 PM

McDonald's reported a modest increase in quarterly profits Tuesday as higher sales in the United States offset the continued hit from conflict in the Middle East.

The big fast-food chain experienced a dip in comparable sales in "International Developmental Licensed Markets," which comprises emerging markets.


"The continued impact of the war in the Middle East more than offset positive comparable sales in Japan, Latin America and Europe," McDonald's said of the division.

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The chain scored higher comparable sales in the United States — where results were boosted by "strategic" price increases — and in the "International Operated Markets" division, where gains in Britain and Germany compensated for negative sales in France.

Overall, profits in the first quarter rose seven percent to $1.9 billion on a five percent increase in revenues to $6.2 billion.

Earlier this month, McDonald's agreed to acquire Alonyal, which owns 225 McDonald's restaurants in Israel which have been hit by calls for a boycott over the war with Hamas in Gaza.

In the company's February earnings conference call, McDonald's executives acknowledged a hit from boycotts, with the biggest impact in the Middle East but also effects in other Muslim countries such as Malaysia and Indonesia.


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