Yum Brands, the owner of the Taco Bell, KFC, and Pizza Hut restaurant chains, announced on Wednesday, February 7, 2024, a decline in sales in the last quarter of 2023, amid boycott campaigns against those companies following the Israeli war on Gaza.
The sales decline came in lower than estimates on Wall Street, due to weak growth in its famous brand chains, amid fluctuations in the behavior of American consumers.
Yum Brands’ sales declined in the fourth quarter of the past year by less than 10%, as the conflict-affected its operations in the Middle East and other markets such as Malaysia and Indonesia. The company said the impact extended into the first quarter of the current year 2024, but it is expected to moderate in the remaining months of the year.
The Middle East, Turkey, and North Africa markets represent about 6% of KFC’s sales, compared to only about 5% for Pizza Hut.
Yum Brands’ sales decline joins that of competitors McDonald’s and Starbucks, which suffered losses due to boycott campaigns following accusations of supporting or cooperating with the Israeli occupation army in its war on Gaza more than 4 months ago.
McDonald’s optimistic sales forecasts failed
For the second time in a month, McDonald’s reveals the extent of its markets’ vulnerability in the Middle East and beyond, due to the consequences of the Israeli war on Gaza.
The connection between the Gaza war and the company dates back to October 10th of last year when McDonald’s Israel posted pictures of distributing free meals to the Israeli army.
Despite repeated statements from the parent company’s management denying its connection to McDonald’s Israel’s move, Arab and Islamic countries were pushed to announce a boycott of the restaurant chain.
On Monday, February 5th, the company announced the failure to achieve a key sales target, attributed to customer boycotts due to allegations targeting the chain’s support for Israel.
McDonald’s is one of several Western companies, including Starbucks and Coca-Cola, that have faced boycotts and protests from anti-Israel activists, with the company stating that the conflict between Israel and Gaza “significantly affected performance in some foreign markets” in the last quarter of 2023.
Since October 7, 2023, the Israeli army has been waging a destructive war on Gaza with American support, resulting in, as of Wednesday, 27,708 martyrs and 67,147 injured, most of whom are children and women, according to Palestinian authorities, and causing “immense destruction and an unprecedented humanitarian disaster,” according to the United Nations.
