Stock market: McDonald's sees its sales plunge, a consequence of the Israeli crisis?

Israeli-Palestinian tensions are not only shaking up the financial markets, oil or cryptos: they are even entering the world of burgers. The latest victim is McDonald's, whose results are weighed down by a drop in sales. Fierce competition, epidemic of E. Coli and economic slowdown have combined to bring down the figures of the famous chain. Focus on a bitter quarter.

McDonald's: The stock market impacts of a health and economic crisis

The last quarter was not easy for McDonald's. With a 1.5% drop in global salesthe brand has known its biggest fall in four yearsleaving investors perplexed. In question, a epidemic of E. Coli which forced the chain to temporarily remove its famous Quarter Pounders from certain restaurants in the United States, a measure which resulted in a drop of almost 7% in the stock in one week.

In a market already shaken by economic uncertainties and consumers' prudence with their budgets, McDonald's tried toattract customers with aggressive promotions and budget-friendly meals. However, the results were disappointing.

Some notable points:

• Epidemic of E. Coli, impacting attendance and sales;
• 3% drop in annual net profit to $2.26 billion;
• McDonald's shares down significantly, raising doubts among investors.

Despite everything, the American brand is trying to stay the course, but the challenge remains immense in an economic environment where the stock market seems anything but stable.

Israel and the media storm that is shaking Western channels

Beyond the epidemic, tensions in the Middle East have not spared fast food restaurants. Indeed, McDonald's, like Starbucks, faces calls for boycotts in its international marketsfueled by the perception of financial ties with Israel.

This movement is gaining momentum in Europe and China, and weighs heavily on restaurant attendance, with dSales declines reaching 2.1% internationallyparticularly in France and the United Kingdom.

In this context, McDonald's acquired its entire Israeli franchise in the springor 225 establishments and more than 5,000 employees. This gesture reignited tensions, adding new weight to the burden on the chain already strained by the price war in the sector.

With sales down 3.5% on local partner markets, McDonald's now faces growing criticismattendance at half mast and consumers increasingly concerned about ethical and financial issues.

Finally, for crypto enthusiasts, another question arises: in a context of Iran-Israel tensions, will bitcoin be able to hold up against gold? A question that takes on its full meaning given the recent performances of the yellow metal.