ISRAEL- McDonald’s has entered into an agreement to repurchase all 225 of its franchised restaurants in Israel from Alonyal Limited, an Israeli company owned by businessman Omri Padan. 

The decision comes after months of pro-Palestinian boycott activity, which has adversely affected sales for the fast-food giant amidst the conflict between Hamas and Israel.

 Despite some consumers boycotting McDonald’s over perceived support for Israel, the company denies any such affiliation.

This backlash came after Alonyal announced plans to offer free meals to Israeli soldiers, prompting protests and calls for a boycott of the business. 

As a result, McDonald’s franchises in several countries, including Pakistan and Malaysia, publicly distanced themselves from the Israel business.

Under this new deal, McDonald’s will acquire the restaurants previously overseen by Alonyal Limited, which has managed McDonald’s operations in Israel for the past three decades since the brand’s introduction in the country. 

The company also promises to retain all 5,000 workers. 

Chris Kempczinski, McDonald’s president and CEO, acknowledged the negative impact of the conflict on the brand’s sales in the Middle East and other regions, citing “associated misinformation” as disheartening and unfounded.

Alonyal CEO Omri Padan expressed gratitude for the brand’s growth over the years and optimism for the future.

“Alonyal Limited has been proud to bring the Golden Arches to Israel and serve our communities. 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,” says Padan. 

“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,” he added.

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