McDonald’s said it was seeing a "meaningful" hit to business, as customers in the Middle East and elsewhere boycott the firm for its perceived support of Israel.
Chief executive Chris Kempczinski acknowledged the impact in a LinkedIn post, blaming the backlash on "misinformation".
In the weeks following the Hamas attack on Israel on October 7 last year, McDonald’s Israel said it had given away thousands of free meals to members of the Israeli military.
The moves sparked grassroots calls for boycotts of the brand by those angered by Israel’s military response in Gaza.
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