McDonald’s bought all of its restaurants in Israel from Alonyal Limited, the franchisee that has owned and operated all 225 of its locations in the country for more than three decades, the fast food chain announced Thursday.
Once the transaction is carried out, McDonald’s will own and operate all of its restaurants in Israel, and will retain its more than 5,000 employees on equivalent terms, the company said. The deal is expected to be finalized in the coming months.
“McDonald’s remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward,” said Jo Sempels, president of international developmental licensed markets at McDonald’s.
The company did not disclose any specifics about the deal.
McDonald’s has been a target of boycotts after McDonald’s Israel shared on social media that it was donating “tens of thousands of meals” to the Israel Defense Forces and citizens across Israel attacks carried out by Hamas on Oct. 7.
The company, along with several others, said its international sales were hurt in the fourth quarter of 2023 by the Israel-Hamas war, pointing to the conflict as a major headwind.
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McDonald’s has more than 40,000 locations around the world, 90% of which are independently owned and operated by franchisees. Franchisees have the power to set prices, develop, and roll out promotions and hire employees.
“We’ve grown the brand to be the leading and most successful restaurant chain in Israel and are grateful to our management, employees, suppliers, and customers who made this possible,” said Omri Padan, CEO and owner of Alonyal. “We are encouraged by what the future holds.”