Economic Boycotts Against Israeli Aggression Drive Major Losses for US Brands

As global backlash against Israel’s actions in Gaza and Lebanon intensifies, major American brands are reporting substantial financial losses due to escalating boycott campaigns. International media reveal that prominent U.S. companies, known for their support of Israel, are witnessing sharp revenue declines, particularly in Middle Eastern and Islamic markets.

Starbucks, for example, reported a 7% drop in sales from July to September 2024 compared to the previous year, with profits shrinking from $1.21 billion to $909.3 million. This marked a 25% dip in earnings per share, missing market expectations. The company attributed the slump to mounting boycott pressures following Israel’s ongoing operations in Gaza.

Similarly, the Americana Group, which owns franchises like Pizza Hut, KFC, and Krispy Kreme, experienced a near 50% profit drop during the first nine months of 2024. The boycott impact was particularly strong across the Middle East, where consumer boycotts targeted brands accused of backing Israel.

Coca-Cola reported a 14% decline in profits amid falling sales in Arab and North African regions, and PepsiCo noted a 5% revenue loss attributed to the same cause. McDonald’s faced a smaller but noticeable 2% decline, despite support from specific regional markets.

These indicators suggest a sustained and growing economic impact, as brands grapple with continuous declines in sales across boycotted regions. Analysts predict that as long as Israeli aggression continues with American backing, boycotts will escalate, further pressuring corporations and potentially shifting corporate positions on the conflict.