Fast food chain McDonald’s has blamed boycotts in countries with large Muslim populations because of the violence in Gaza for a dip in its global sales for the first time in three years.

The firm on Monday reported a 1 percent decline in sales across all businesses quarter-to-quarter, and blamed low demand abroad, particularly in France, the Middle East and China, Fortune reported.

In a call with investors, its CEO Chris Kempczinski said the slump in China sales was due to overall consumer sentiment but in France, it was driven by “a higher Muslim population”.

The problem was that “France is one of the markets that has a higher Muslim population.

“And so when you think about the Middle East, the impact that we’re seeing in France has been more than maybe in other markets because of that population.

“So there’s a lot that the team is looking at doing on, ‘How do we make sure we’re telling our story from a marketing standpoint at the local level?’” he was quoted as saying by the business publication.

Sales decline in US too

In response, he said, McDonald’s is trying to regain its position in the market by competing with its rivals in terms of price, introducing €4 (RM19.94) Happy Meals in France to target families and to work on its brand positioning.

France is the third largest economy in Europe behind Germany and the UK, and about 10 percent of the French population is Muslim.

Besides international sales slumps, McDonald’s also suffered a 0.7 percent decrease in like-for-like revenue in the US market because price hikes could not make up for the drop in footfall, Fortune reported.

“The company is monitoring the evolving situation, which it expects to continue to have a negative impact on systemwide sales and revenue as long as the war continues,” it reportedly said in its regulatory filing on Monday.

McDonald’s was hit by local boycotts after the Israeli franchise owner provided free meals to Israeli soldiers in the days after the Oct 7 attack on Israel by Hamas that killed at least 1,189 people.

Israel’s bombardment on Gaza since then has killed at least 39,000 people, according to Palestinian Health officials.

Also hit by boycotts, McDonald’s Malaysia franchise owner, the 100-percent Muslim-owned Gerbang Alaf Sdn Bhd, has made a donation of RM1 million to humanitarian aid funds to support Palestinians, and denied any links to Israel.

It also commenced libel action against the local chapter of the Boycott Divest and Sanction movement for Palestine (BDS Malaysia) but withdrew the suit in April.

BDS Malaysia, however, said it will continue to categorise the McDonald’s boycott as an “organic boycott” by the community, as long as the international chain does not “condemn the Israeli crime of genocide of the Palestinian people in Gaza”.

McDonald’s M’sia laments acts of vandalism on its premises

McDonald’s M’sia laments acts of vandalism on its premises

McDonald's billboard in Sungai Petani vandalised

McDonald's billboard in Sungai Petani vandalised

Insulting McDonald's customers ruins boycott on pro-Israel businesses

Insulting McDonald's customers ruins boycott on pro-Israel businesses

YOURSAY | You can't be selective about who or what to boycott

YOURSAY | You can't be selective about who or what to boycott