McDonald’s, Starbucks, & Domino’s report drop in sales

Domino’s, Starbucks, McDonald’s… Several US companies have reported drops in sales since the beginning of Israel’s invasion of Gaza.

Domino’s Pizza says “same-store sales” in Asia have fallen by 8.9% in the second half of 2023, especially in Malaysia, a Muslim-majority country.

McDonald’s shares dropped by about 4% after the company revealed that its fourth-quarter revenue shortfall was partly caused by a slowdown in Middle Eastern sales. Starbucks’ stocks saw a drop of almost 2% since Tuesday when the company revealed the ongoing conflict also affected its US sales in the final three months of the year.

In the fourth quarter of 2023, McDonald’s says its revenues have increased less than expected. “The most pronounced impact that we’re seeing is in the Middle East and Muslim countries like Indonesia and Malaysia,” CEO Chris Kempczinski said.

Starbucks says it expects to grow globally by 4-6% instead of 5-7%, with a huge impact on the US market. Last October, the company sued the Starbucks Workers United union over a social media post in support of Palestine.

In the last few months of 2023, several online activists called to boycott these companies. The BDS movement, a grass-roots movement combating the colonisation of Palestinian territories, said last October that McDonald’s and Domino’s ‘made generous donations to Israel’s genocidal military.’

CEOs from these firms denounced ‘misinformation’, ‘false statements on social media’ and ‘misperceptions about their position’.