McDonald's Corp (NYSE:MCD, ETR:MDO) has posted a rare earnings miss after the knock-on effects of the Israel-Hamas war ate into the fast-food chain’s sales late on in the year.
“Systemwide sales and revenue [have] been negatively impacted by the war,” McDonald’s said in a fourth-quarter trading update on Monday, with this hit expected to last “as long as the war continues”.
Comparable international developmental licensed markets sales, which account for a tenth of the chain’s revenues, rose by 0.7% - missing estimates for 5.5% growth.
Global comparable sales jumped by 3.4% over the fourth quarter meanwhile, marking the firm’s slowest growth in three years, when the pandemic dampened footfall.
McDonald’s is among western brands to have faced pressure internationally, including through protests and boycotts, for its perceived pro-Israeli stance following the outbreak of war in the Middle East in October.
Over the full year, global sales growth stretched to 9%, with net income jumping 7% to US$2.04 billion.
Diluted earnings per share also climbed, rising 8% to US$2.8, with chief executive Chris Kempczinski labelling full-year growth as a “testament to the tremendous dedication of the entire McDonald’s System”.
Shares faced a hit however, falling 4% to US$285.41 on Monday.