McDonald’s Corp MCD is set to take over its chain of restaurants in Israel from its operator, Alonyal Ltd.
Alonyal took up the McDonald’s franchise more than 30 years ago and has about 225 restaurants with about 5,000 employees.
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 decision comes after the restaurant chain gave rise to difference of opinion in the initial days of the Israel-Hamas war, according to a report from Bloomberg.
The business attained controversy after photos and videos showed franchised stores in Israel offering soldiers meals.
“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,” said Jo Sempels, President of International Developmental Licensed Markets at McDonald’s Corporation.
The report noted that McDonald’s plans to scout for a franchisee for its Israel business in a few months.
Also Read: McDonald’s Sales Fall Short As Middle East Tensions Flare – But Price Hikes Rescue The Growth Story
Price Action: MCD shares traded lower by 0.90% at $267.67 on Friday.
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