McDonald's Corp will repurchase all of its Israeli restaurants after boycotts affected regional sales in recent months.
Some 225 sites will be bought from franchisee Alonyal under the deal, with these collectively employing 5,000 people.
Sales have been hit since the Israel-Hamas conflict broke out in October, with McDonald’s facing criticism recently on Alonyal’s move to give thousands of free meals to Israeli soldiers.
Muslim-majority nations, including Kuwait, Malaysia and Pakistan, had publicly slated the fast food chain over the perceived support of Israel.
A resultant boycott spread beyond the Middle East, where roughly 5% of its restaurants are located, prompting a quarterly sales miss for the first time in almost four years.
Though details of the deal with Alonyal were not revealed, McDonald's said Israeli operations would be retained “on equivalent terms”.
“McDonald’s remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward,” international development head Jo Sempels added.