McDonald's Buys Back Israel Franchise After Controversy Over Meal Donations to Israeli Military

McDonald's is buying back its Israel franchise from Alonyal Ltd. after 30 years, taking ownership of 225 restaurants with over 5,000 employees.

The franchise donated free meals to the Israeli military after a Hamas attack in October, sparking boycotts and protests.

McDonald's franchises often operate autonomously under local ownership. The CEO said the Israel-Hamas conflict impacted markets in the Middle East and beyond.

After the transaction, McDonald's will retain Alonyal's restaurants and employees. Terms were undisclosed.

Starbucks has also faced boycotts over perceived pro-Israel stances and alleged financial Israel ties.