April 5 (UPI) — McDonald’s said it will buy its Israeli franchise from Alonyal Limited, after the fast-food chain suffered setbacks amid the Middle Eastern country’s war against Hamas in Gaza.
The U.S. fast-food behemoth announced the acquisition in a statement Thursday, saying it has agreed to buy all 225 McDonald’s restaurants in the nation from Alonyal.
“For more than 30 years, Alonyal Limited has been proud to bring the Golden Arches to Israel and serve our communities,” Omri Padan, CEO and owner of Alonyal Ltd, said in a statement.
“We are encouraged by what the future holds.”
Announcement of the sale comes after McDonald’s said in February that its international developmental licensed markets increased 0.7%, well below expectations, due to “the impact of the war in the Middle East.”
McDonald’s in Israel has come under criticism after it said it was donating thousands of meals to the Israel Defense Forces amid its war against Hamas in Gaza.
The announcement sparked calls for a boycott of the fast-food chain.
McDonald’s on Thursday said it will own and operate the Israeli restaurants once the transaction has been completed and that the roughly 5,000 employees will 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,” Jo Sempels, president of International Developmental Licensed Markets at McDonald’s Corporation, said in a statement.
The deal is expected to close in the coming months.
The war, which began in early October, has been devastating for Palestinians in Gaza. Some 62% of all homes in the enclave have been destroyed or damaged, about 1.9 million Palestinians have been internally displaced and more than 33,000 people have been killed.