McDonald's Buys Back Israel Franchise Amid Controversy Over Military Donations

McDonald's is buying back its Israel franchise from owner Alonyal for $225 million after it donated free meals to the Israeli military, sparking boycotts.

The buyback will give McDonald's ownership of 225 outlets in Israel that employ over 5,000 people.

McDonald's has seen "meaningful business impact" in several Middle East markets due to the Israel-Hamas conflict, with sales growth down.

Other Western chains like Starbucks and Domino's have also faced boycotts and sales drops in Muslim-majority nations over perceived pro-Israel stances.

McDonald's says it "remains committed" to the Israeli market going forward even after the franchise controversy.