Feb 5 Reuters McDonald39;s reported its first quarterly sales miss in nearly four years on Monday on weak sales growth at its international business division, partly due to the conflict in the Middle East, sending the company39;s shares down 3.

The burger giant is among several Western brands that have seen protests and boycott campaigns against them over their perceived proIsraeli stance in the IsraelHamas conflict.

McDonald39;s said the conflict had meaningfully impacted performance in some overseas markets in the fourth quarter.

With the most pronounced hit in the Middle East, the company also saw an impact to business in countries such as Malaysia and Indonesia, as well as in France, CEO Chris Kempczinski said on a postearnings call.

Comparable sales in McDonald39;s International Developmental Licensed Markets segment rose 0.7 in the quarter, widely missing estimates of a 5.5 growth, according to LSEG data. The business accounted for 10 of McDonald39;s total revenue in 2023.

The effects of the war on earnings durability would be our biggest concern … it looks like this is going to be an issue that persists past the next quarter or maybe even two, said Brian Mulberry, client portfolio manager at Zacks Investment Management, which holds McDonald39;s shares.

Starbucks last week also cut its annual sales forecast, partly due to a hit to sales and traffic at stores in the Middle East.

Meanwhile, consumer spending in China, McDonald39;s secondlargest market, has…