Fast food chain McDonald's said it has endured "meaningful business impact" from the ongoing conflict in Israel and Palestine in several Middle East markets.
Its CEO Chris Kempczinski blamed this on "associated misinformation" about the brand, Reuters reported.
This comes as McDonald's Malaysia takes legal action against the Malaysian chapter of the Boycott Divest Sanction (BDS) Movement in support of Palestine, for allegedly defaming the corporation.
The BDS movement did not start the McDonald's boycott but acknowledges that there is a grassroots boycott movement against the fast food chain.
This is after in October, McDonald's Israel announced on social media that it was providing free meals to members of the Israel Defence Force.
McDonald's franchises in some other countries, including Malaysia, however, announced significant contributions to humanitarian funds for Palestinians.
According to Kempczinski, the boycott calls are "disheartening and ill-founded".
"In every country where we operate, including in Muslim countries, McDonald's is proudly represented by local owner-operators who work tirelessly to serve and support their communities while employing thousands of their fellow citizens," Kempczinski said in a LinkedIn post.
The fast food chain reported a total annual revenue of US$23.18 billion (US$1 = RM4.65) this year. It operates in more than 100 countries.
'Let's show what grassroots boycotts can do'
Meanwhile, the BDS Movement in a statement on Wednesday condemned the fast food franchise for "bullying" Palestine solidarity activists in Malaysia.
It said the McDonald's headquarters in Chicago, US is responsible for protecting the reputation of its brand by ensuring none of its franchisees support or are associated with "grave human rights violations".
"Putting it simply, associating the McDonald’s brand with the Israeli army and its crimes against the Palestinian people cannot go without consequences for the company!" it said.
It added that while the boycott against McDonald's was "organic", it had the endorsement and support of the BDS Movement.
"Instead of pressuring its parent company (McDonald’s Corporation) to terminate its shameful franchise agreement in Israel, McDonald’s Malaysia and its Saudi owner are desperately trying to silence voices of peaceful solidarity with the Palestinian liberation struggle in Malaysia.
"We cannot let this pass. Let’s show McDonald’s what grassroots boycotts can do," it said.
More than 20,000 Palestinians have died and more than 50,000 injured - a large proportion of which are children - in Israeli attacks since Oct 7.
On Oct 7, Hamas attacked parts of Israel killing at least 1,200 people. - Mkini
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