US consumer boycotts over Israel hit profits at Gulf fast food outlets

A consumer boycott over US support for Israel caused profits to slump at the Gulf’s biggest operator of American fast food restaurants last year, but pressure may be easing.

Americana Restaurants — which runs some 1,850 outlets around the region under brands like KFC and Pizza Hut — blamed geopolitical tensions and weak consumer demand for the 9% fall in revenue and the 39% drop in profit in 2024 compared to a year earlier. It said demand started to pick up in the fourth quarter, but there are clouds on the horizon: Trump’s Gaza policy is stoking regional tensions anew.

Rivals have seen similar trends. McDonald’s reported improving business in the latter months of 2024 while Kuwait’s Alshaya Group says consumer demand has recently picked up, though it has paused plans to sell part of its regional Starbucks franchise.