McDonald's will buy more than 200 of its fast-food restaurants in Israel from the company that owns the franchise after sales plummeted because of boycotts over providing free meals to Israeli soldiers, according to a report.
The burger company will buy the 225 restaurants from Alonyal Ltd., which has operated the Golden Arches eateries in Israel for 30 years, CNBC reported.
"An agreement to sell Alonyal to McDonald's Corporation has been signed," McDonald's said in a statement on Thursday. "Upon completion of the transaction, McDonald's Corporation will own Alonyal Limited's restaurants and operations, and employees will be retained on equivalent terms."
The terms of the deal were not disclosed but is expected to be finalized in a few months.
McDonald's said it will continue to run the restaurants and keep the 5,000 employees.
"We thank Alonyal Limited for building the McDonald's business and brand in Israel over the past 30 years. McDonald's remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward," Jo Sempels, president of International Developmental Licensed Markets at McDonald's Corp., said in a statement.
Weeks after the Israel-Hamas war broke out in Gaza after Hamas militants attacked Israel on Oct. 7, McDonald's Israel announced on social media that it would give free meals to Israel Defense Forces members, CNBC reported.
The giveaway sparked pro-Palestinian protests throughout the Muslim world, spreading from the Middle East to Malaysia and Indonesia.
The financial repercussions of the decision were soon felt. McDonald's CEO Chris Kempczinski in January characterized it as having a "meaningful business impact" on the chain's Middle East restaurants.
