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McDonald’s buys back all Israeli restaurants after they gave free food to IDF soldiers

The decision was announced on Thursday by Israeli franchisee owner Omri Padan

April 5, 2024 13:21
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McDonald's has announced it will acquire 225 of its franchisee restaurants in Israel following a downturn in sales since October 7. (Photo by EMMANUEL DUNAND/AFP via Getty Images)
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McDonald’s will buy back all 225 of its restaurants in Israel, the Israeli franchisee owner announced on Thursday.

The fast-food franchisee was criticised after it provided thousands of free meals to IDF soldiers in the days after October 7, leading to consumer boycotts of McDonald’s by pro-Palestinians in the Middle East and other regions. The boycotts caused a “meaningful business impact” in the ensuing months, according to a statement by McDonald’s CEO Chris Kempczinski in January.

Omri Padan, CEO and owner of franchisee Alonyal Limited, announced on Thursday that he had signed an agreement to sell the Israeli outposts back to McDonald’s Corporation.

“For more than 30 years, Alonyal Limited has been proud to bring the Golden Arches to Israel and serve our communities,” Padan said in a statement published by McDonald’s. “We’ve grown the brand to be the leading and most successful restaurant chain in Israel and are grateful to our management, employees, suppliers, and customers who made this possible. We are encouraged by what the future holds.”

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McDonalds