From Fortune:

McDonald’s CEO Chris Kempczinski has admitted the business is facing significant financial impacts due to boycotts stemming from the Israel-Hamas conflict. Other Western brands like Starbucks are also negatively affected, with grassroots boycotts ongoing. The U.S. has previously backed Israel, but that support seems to be dwindling.

McDonald’s came under fire after an Israel franchise claimed they were donating meals “to all those who are involved in the defence of the state,” triggering quick distance statements by other franchises. CEO Chris Kempczinski maintains solidarity with communities and denies the business has any political position.

In Malaysia, McDonald’s is seeking 6 million ringgit ($1.31 million) in damages from the Boycott, Divestment and Sanctions (BDS) Malaysia movement after accusing the company of having links to Israel’s “genocidal war against Palestinians in Gaza.” Other U.S. brands have also faced backlash related to the Israel-Hamas conflict, which has claimed over 22,000 lives.

Starbucks is also embroiled in controversy and lawsuits over its stance – or lack thereof – regarding the Israel-Hamas conflict. The chain has denied holding a political view supporting one side or another, publicly condemning violence, loss of innocent life, and hate speech. Despite this, vandals have defaced Starbucks locations and statements painting the company as complicit in the Israel-Hamas conflict.



Read more: Chris Kempczinski says Middle East boycotts are impacting McDonald’s business