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McDonald’s sales rebound in Middle East as boycott impact fades

McDonald's enjoyed a rebound in sales in the final quarter of last year Alamy via Reuters
McDonald's enjoyed a rebound in sales in the final quarter of last year
  • Q4 growth in Middle East
  • Sales hit by Israel-Hamas war
  • Global sales down

McDonald’s recorded sales growth in the Middle East in the fourth quarter of last year as the impact of boycotts tied to the Gaza war faded. This helped the US burger giant offset weaker performance elsewhere in the world.

The fast food chain posted a 4.1 percent rise in Q4 sales in its international developmental licensed markets division, driven by gains in the Middle East and Japan, marking the region’s first increase in a year.

In contrast, global sales grew 0.4 percent, defying analyst expectations of a decline. US sales fell 1.4 percent, the company said in its earnings call this week. 

McDonald’s was among several Western brands targeted by boycotts in the Middle East linked to the Israel-Gaza conflict after Hamas’s attack in October 2023. 

In February last year McDonald’s missed its first quarterly sales target for the first time in four years, citing weaker demand in international markets affected by boycotts. 

The recovery in the Middle East was not enough to lift global Q4 performance, with international same-store sales down 1 percent for the year. 

Revenue in Q4 remained flat at $6.4 billion, while net profit fell 1 percent to $2 billion, missing estimates of $2.1 billion.

Shares closed up 4.8 percent in New York.