In a strategic move to address the declining sales in the region, McDonald's has announced its plan to buy its restaurants in Israel from its longstanding franchisee, Alonyal Limited. The Chicago-based fast-food giant aims to reset its sales trajectory that has been negatively impacted by boycotts in the Middle East, specifically in Israel.

Alonyal Limited currently owns and operates 225 McDonald's restaurants in Israel. The financial details of the acquisition were not disclosed, but the deal is slated to be finalized in the coming months. As part of the agreement, McDonald's will take over the operation of these restaurants and retain over 5,000 employees.

In a statement, McDonald's President of International Developmental Licensed Markets, Jo Sempels, expressed the company's commitment to the Israeli market and its determination to enhance the overall employee and customer experience in the region moving forward.

Alonyal Limited has held the franchise for McDonald's in Israel for over three decades. In a statement released on Friday, Alonyal CEO Omri Padan referred to the chain as one of the country's most prosperous fast-food brands.

However, controversy engulfed Alonyal last October when it was revealed on social media that McDonald's had been providing free meals to Israeli soldiers. This revelation sparked boycotts not only in the Middle East but also in Muslim-majority countries such as Malaysia and Indonesia. The impact of these boycotts was felt by McDonald's, resulting in reduced sales in countries with large Muslim populations, including France.

Earlier this year, McDonald's CEO Chris Kempczinski acknowledged the ongoing conflict in the region, stating that until there is a significant improvement in the situation, the company does not expect a considerable upturn in sales. Kempczinski expressed his concern over the humanitarian crisis and emphasized the weight that such circumstances place on global brands like McDonald's.

With this acquisition, McDonald's aims to revitalize its presence in the Israeli market and gradually recuperate from the sales slump caused by the region's boycotts. The fast-food giant's strategic move is expected to reshape its presence and competitiveness, opening new opportunities for growth and strengthening the company's footprint in the region.