McDonald’s Corporation has announced the acquisition of all 225 outlets of its Israeli franchise from Alonyal Ltd., a company owned by Israeli entrepreneur Omri Padan for over three decades.

This decision comes after a period of significantly reduced sales, influenced by a pro-Palestinian boycott during the recent Israel’s ongoing genocide in Gaza.

The fast-food giant has faced a challenging period, reporting its first revenue shortfall in almost four years this February, with a notable decline in the Middle East division. The boycott, particularly strong in Arab and Muslim-majority nations, emerged from perceptions of McDonald’s support for Israel, an allegation the company’s management has consistently refuted.

The controversy intensified when the Israeli franchise provided complimentary meals to Israeli soldiers amidst the Hamas-led resistance attacks on October 7, which resulted in approximately 1,200 fatalities in Israel and the capture of 253 individuals.

The ongoing conflict has had a devastating toll, claiming the lives of at least 33,000 in the Gaza Strip and prompting warnings from the U.N. and WHO about a looming famine affecting over half a million people.

McDonald’s CEO, Chris Kempczinski, acknowledged the significant impact of the war on the company’s operations in the Middle East and beyond, including countries like Malaysia and Indonesia. The corporation has been actively combating misinformation regarding its stance on the conflict, emphasizing its neutrality and the independent actions of its local business partners.

Despite efforts to mitigate the situation, including distancing statements from McDonald’s franchises in several Muslim countries and pledges of support to Gaza, the brand has experienced a substantial drop in sales across Arab nations, with figures plummeting by 50% to 90% month-over-month.

According to CNBC, The company’s stock has also suffered, showing a 10% decrease year-to-date and a 5.5% decline compared to the previous year.

As the genocide persists, McDonald’s has expressed its intention to monitor the evolving situation closely, anticipating continued adverse effects on its global sales and revenue. The full implications of this acquisition and the ongoing boycott remain to be seen as the company navigates these turbulent times.