Americana Restaurants, the largest fast food operator in the Middle East, announced on Thursday a 48.2% drop in profits, totaling $117.4 million over nine months. This decline comes amid global boycotts of brands linked to the U.S. and Israel.
Based in Kuwait, Americana holds franchises for major American food chains, including KFC, Pizza Hut, Baskin Robbins, Costa Coffee, and Krispy Kreme. The company attributed its profit decline to reduced sales amid ongoing geopolitical tensions and sluggish consumer demand in some markets, despite new store openings.
In addition to geopolitical challenges, Americana cited increased depreciation charges from its new locations and the introduction of corporate tax in the United Arab Emirates as contributing factors to the profit decrease. Revenues fell by 15.3% to $1.61 billion.
However, Americana noted a “noticeable recovery” in average daily transactions from July to September compared to the previous quarter.
Meanwhile, McDonald’s has reported its lowest sales figures in four years, with a 1.5% drop in sales at established outlets between July and September. This follows a 1% decline from April to June, marking the first back-to-back downturns since the pandemic, according to The Guardian.
Western brands are facing boycotts worldwide due to the ongoing conflict in Gaza, which has resulted in over 43,000 Palestinian deaths and more than 100,000 injuries since October 2023.
In April, McDonald’s announced it would buy back its stores in Israel after its franchise there provided thousands of free meals to Israeli soldiers, which intensified calls for a boycott. Similarly, Pizza Hut has faced backlash after its Israeli franchise posted images of soldiers with its products in January.
Starbucks also encountered boycott challenges, reporting significant losses in December 2023 following a lawsuit against the Starbucks Workers United union over a pro-Palestine social media post.
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