Sales of the American Domino's Pizza restaurant group in Asia fell by 8.9% in the second half of 2023 due to boycott campaigns after American support for…Israel In its war on Gaza stripAccording to the Israeli newspaper Yedioth Ahronoth.
According to Reuters, the group expects its net profit before taxes to decline in the first half of 2024 to between 87 million Australian dollars (57.42 million US dollars) and 90 million Australian dollars (59.4 million US dollars), affected by a decline in its sales in Asia and Europe.
The arrow falls
The group's shares, listed in Australia, fell by 30.3% to 39.93 Australian dollars (26.35 US dollars) today, from 57.3 Australian dollars (37.82 US dollars) last Wednesday when the company disclosed its expectations.
Yedioth Ahronoth considered the American group “the latest victim to join a growing list of American brands,” such as McDonald's, Starbucks, and Coca-Cola, whose sales have been affected in the Asian market, which is considered essential for growth due to the presence of large Muslim populations.
During a conference organized remotely, Don Meig, CEO of Domino's Pizza, tried to explain the turmoil the company is facing.
Meg attributed the decline in sales to anti-American sentiment in some Asian regions, stressing that American brands, especially in Malaysia, are negatively affected by the current events in the Middle East, according to the Israeli newspaper.
Yedioth Ahronoth indicated that consumers in countries such as Egypt and Jordan are looking for alternative dining options, avoiding American fast food chains, and are reluctant to buy basic household products from American brands. This trend extends beyond the main East Asian markets, and affects… Global company operations.
Many citizens of Islamic and Arab countries have launched campaigns to boycott products that support the Israeli occupation or those that carry the nationality of the countries supporting it in response to the war on the Gaza Strip. However, since October 7, many consumers in these countries have been boycotting American products because of their support for Israel.
Domino's said in a statement: “With the continued need for improvements in the second half to increase demand… any previous expectations for fiscal year 2024 performance, whether de facto or otherwise, are no longer valid.”
The company had previously expected to achieve much higher profits for the fiscal year 2024 than 2023 as it continued to reduce costs.
Source : Al Jazeera + Reuters + Israeli press