Digital Audit: McDonald’s
Enterprise Technology Stack & Vendor Relationships
McDonald’s acquired Dynamic Yield, a Tel Aviv-headquartered AI personalization and “decision logic” company founded in 2011 by CEO Liad Agmon and CTO Omri Mendellevich, for a reported $300 million on 25 March 2019, marking McDonald’s largest acquisition in nearly two decades 123456. At the time of acquisition, Dynamic Yield employed approximately 200 people, the majority based in its Tel Aviv development center 3. McDonald’s divested Dynamic Yield to Mastercard in December 2021, with the sale completing on 1 April 2022; at the time of sale approximately 220 of Dynamic Yield’s 320 employees were based in Israel 78910. McDonald’s separately acquired Apprente, a US-founded voice-ordering AI startup, in September 2019, forming the internal “McD Tech Labs” unit 11. McD Tech Labs was itself acquired by IBM in October 2021 to jointly build the Automated Order Taker (AOT) voice AI system for drive-thrus 12. The IBM/McDonald’s AOT program ran in more than 100 restaurants and was shut down no later than June 2024 due to accuracy problems, with no Israeli-origin component identified in this Apprente/IBM pipeline 131415. Checkpoint Systems, a division of Canada’s CCL Industries, supplies RFID hardware and software to McDonald’s France for reusable-container inventory tracking, first selected in 2021 and deployed to more than 1,200 French stores; this company is distinct from the Israeli-founded cybersecurity firm Check Point Software Technologies, and no evidence connects the Israeli Check Point to McDonald’s 16. Where Israeli-origin technology was used (Dynamic Yield), contemporaneous reporting described its rollout toward McDonald’s roughly 37,000 restaurants across more than 120 markets for menu personalization and upsell decisioning - a customer-facing function rather than network security or core cloud infrastructure 17. A separately reported IoT password vulnerability affecting McDonald’s soft-serve ice cream machines (McFlurry/Taylor equipment) involves a U.S.-based vendor with no Israeli nexus identified 18.
No public evidence identified that McDonald’s holds a direct licensing or subscription relationship with Check Point, Wiz, SentinelOne, CyberArk, NICE, Verint, Claroty, or Palo Alto Networks. No public evidence identified of a systems integrator or IT consultancy engaged by McDonald’s that mandated or recommended Israeli-origin technology.
Surveillance, Biometrics & Retail Technology
McDonald’s has piloted computer-vision-based order-verification and license-plate/facial recognition technology at drive-thrus since approximately 2021, with rollout referenced into 2024, intended to confirm order accuracy and personalize recommendations via license-plate-linked order history subject to customer permission 1920. A biometric-privacy lawsuit was filed against McDonald’s franchisees over voice-recognition drive-thru technology under Illinois’ Biometric Information Privacy Act 21. No public evidence identified tying either the order-verification/facial-recognition pilots or the voice-recognition system named in the BIPA litigation to Israeli vendors such as Trigo, BriefCam, AnyVision/Oosto, or Trax, as available reporting does not name a supplier for either capability.
No public evidence identified of McDonald’s using Trigo for frictionless checkout, BriefCam for video analytics, or AnyVision/Oosto for facial recognition. No public evidence identified of Israeli-origin predictive-policing, sentiment-analysis, social-media-monitoring, or workforce-surveillance tools in use by McDonald’s. No public evidence identified of indirect or bundled delivery of Israeli-origin biometric or surveillance technology to McDonald’s via managed security service providers or platform bundles.
Cloud Infrastructure, Data Residency & Sovereign Cloud Participation
McDonald’s announced a global strategic partnership with Google Cloud on 6 December 2023, covering edge computing via Google Distributed Cloud, generative AI and Vertex AI applications, and support for its loyalty app spanning more than 150 million members, with rollout from 2024 across more than 100 countries 22232425. McDonald’s also maintains a long-standing AWS relationship referenced from 2016 onward, using Redshift, Athena, EMR, and a pilot of EKS as part of its Global Data Platform 26. Project Nimbus is a separate $1.2 billion, roughly seven-year Israeli government cloud contract awarded to Google Cloud and AWS in 2021 27. No public evidence identified of McDonald’s participation in Project Nimbus or any comparable Israeli government cloud initiative, and no source states that McDonald’s restaurant data is processed on Nimbus-specific Israeli government cloud infrastructure or that any McDonald’s cloud contract references Israeli state customers; the shared-vendor relationship with Google Cloud and AWS is a commercial coincidence rather than a documented data-pipeline connection 27.
No public evidence identified that McDonald’s operates, leases, or co-locates data centre infrastructure within Israel. No public evidence identified of McDonald’s providing digital-sovereignty, data-residency, or infrastructure-resilience services to Israeli state institutions or military bodies - McDonald’s is a customer of cloud vendors rather than a provider of such services.
Defence, Intelligence & Security Sector Technology Relationships
No public evidence identified of any contract, partnership, or service agreement between McDonald’s and the Israeli Ministry of Defence, the IDF, Israeli intelligence agencies, or other state security bodies. No public evidence identified of McDonald’s commercially available technology being deployed for military, intelligence, or law-enforcement surveillance applications in Israel or the Occupied Palestinian Territories. No public evidence identified of McDonald’s developing, selling, licensing, or maintaining offensive cyber capabilities, zero-day tools, or digital weapons systems.
Distinct from technology provision, McDonald’s Israel franchisee Alonyal donated an estimated 100,000 free meals (approximately NIS 5 million, or $1.3 million) to Israeli military and rescue personnel following 7 October 2023, which triggered global boycott campaigns 2829. This is documented as a food-service and commercial act rather than a technology-provision relationship, and it falls outside this domain’s technology scope.
AI, Algorithmic & Autonomous Systems
No public evidence identified of McDonald’s providing AI/ML, computer vision, or autonomous decision-support systems to Israeli state, military, or security bodies. The AI deployments identified for McDonald’s - the Dynamic Yield decision engine, the IBM/McD Tech Labs voice AI, and the Google Cloud generative-AI/Vertex AI rollout - are all directed at McDonald’s own commercial drive-thru, kiosk, and app operations rather than third-party state or military customers 11223. No public evidence identified that McDonald’s AI models were trained on, or given access to, civilian population data, intercepted communications, or surveillance-derived datasets originating from Israel or the Occupied Palestinian Territories. No public evidence identified of McDonald’s providing autonomous target-generation, automated threat-detection, or autonomous-tracking systems to Israeli military or security forces.
Technology Ecosystem & R&D Footprint
McDonald’s operated an Israel-based technology R&D presence indirectly through its ownership of Dynamic Yield’s Tel Aviv development center, which had approximately 200 employees at the March 2019 acquisition, growing toward roughly 220 of 320 total staff by the December 2021 sale 38. This was McDonald’s only identified Israel-based technology R&D footprint, and it ended with the Dynamic Yield divestiture to Mastercard, which closed 1 April 2022; no evidence has been found of any subsequent or replacement Israeli R&D facility operated by McDonald’s 10. McDonald’s acquired Dynamic Yield in March 2019 for approximately $300 million and divested it to Mastercard in December 2021, with the sale closing in April 2022, and no other Israeli-origin technology acquisitions or startup/VC-fund investments by McDonald’s were identified 1510.
No public evidence identified of patent portfolios, licensing agreements, or co-development arrangements between McDonald’s and Israeli-domiciled research institutions such as the Technion, Hebrew University, or the Weizmann Institute.
Civil Society Scrutiny & Regulatory History
McDonald’s does not appear as a named entity in the OHCHR Database of Business Enterprises pursuant to Human Rights Council resolutions 31/36 and 53/25, as updated in September 2025, based on available search results 3031. McDonald’s does not appear to be named in the UN Special Rapporteur’s A/HRC/59/23 “From economy of occupation to economy of genocide” report’s tech-sector discussion based on available secondary sources describing the report’s content 32. AFSC Investigate’s McDonald’s Corp profile addresses prison-labor supply-chain issues, such as Louisiana State Penitentiary/Angola cattle supply, rather than technology or Israel-related issues 33.
In July 2013, McDonald’s Israel, then under Alonyal ownership, publicly declined an offer to open a branch in the Ariel settlement mall in the West Bank, with a company spokesperson citing “a policy of staying out of the occupied territories” 34. The current status of this policy following McDonald’s Corporation’s direct buyout of the Israel franchise in April 2024 is not documented in available sources 35.
McDonald’s has been the subject of a large, sustained global BDS-aligned consumer boycott since October 2023, triggered by its Israel franchisee’s free-meal donations to Israeli military and rescue personnel rather than by any technology-provision grievance 2829. The BDS Movement’s official “Boycott McDonald’s” campaign page cites the Israeli franchisee’s IDF meal donations and a defamation lawsuit filed by McDonald’s Malaysia against BDS Malaysia, and it cites no technology-specific grounds such as data, surveillance, AI, or cloud provision 29. McDonald’s CEO Chris Kempczinski publicly called the boycott’s impact “disheartening and ill-founded” in January 2024 3637, and McDonald’s disclosed “meaningful business impact” in Middle East markets in public reporting and SEC disclosures through 2024 383940. McDonald’s Corporation bought out its 30-year Israeli franchisee Alonyal, covering 225 restaurants and more than 5,000 employees, in April 2024, explicitly in response to boycott-driven business losses 414243. The Don’t Buy into Occupation Report 2024 and 2025 editions were reviewed as potential sources naming companies linked to Israeli settlements, but McDonald’s presence or absence on the underlying company list could not be confirmed from the retrieved material 4445. McDonald’s Israel’s operations, now under direct corporate ownership following the 2024 buyout, continue to be listed on Israeli food-delivery platforms such as Wolt 46.
No public evidence identified of any regulatory inquiry, export-control action, or sanctions-related investigation involving McDonald’s technology sales or services to Israeli state entities.
End Notes
Footnotes
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https://corporate.mcdonalds.com/corpmcd/our-stories/article/dynamic_yield_1164112100.html ↩ ↩2 ↩3
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https://news.mcdonalds.com/news-releases/news-release-details/dynamic-yield-acquisition-release ↩
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https://en.globes.co.il/en/article-mcdonalds-buys-israeli-ai-co-dynamic-yield-for-300m-1001279529 ↩ ↩2 ↩3
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https://www.israel21c.org/mcdonalds-acquires-israeli-ai-startup-dynamic-yield/ ↩
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https://www.timesofisrael.com/mcdonalds-to-buy-israeli-startup-to-bring-voice-tech-to-drive-thrus/ ↩ ↩2
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https://haaretz.com/israel-news/business/.premium-why-300-million-israeli-startup-refused-offer-from-google-but-not-mcdonald-s-1.7539237 ↩
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https://corporate.mcdonalds.com/corpmcd/our-stories/article/mastercard-DY.html ↩
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https://en.globes.co.il/en/article-mastercard-buys-israeli-ai-co-dynamic-yield-from-mcdonalds-1001395528 ↩ ↩2
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https://www.timesofisrael.com/mastercard-to-buy-israeli-tech-firm-dynamic-yield-from-mcdonalds/ ↩
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https://www.restaurantdive.com/news/mcdonalds-sells-ai-tech-firm-dynamic-yield-to-mastercard/616412/ ↩ ↩2 ↩3
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https://www.cnbc.com/2019/09/10/mcdonalds-acquires-ai-company-trying-to-automate-the-drive-thru.html ↩
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https://voicebot.ai/2021/10/27/ibm-acquires-mcdonalds-mcd-tech-labs-to-seal-drive-thru-ai-partnership/ ↩ ↩2
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https://www.qsrmagazine.com/story/mcdonalds-stops-testing-ai-voice-ordering-at-drive-thru/ ↩
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https://www.cnbc.com/2024/06/17/mcdonalds-to-end-ibm-ai-drive-thru-test.html ↩
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https://www.restaurantdive.com/news/mcdonalds-ibm-drive-thru-automation-voice-ordering-ai/719085/ ↩
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https://www.packaging-gateway.com/news/checkpoint-rfid-mcdonalds-france/ ↩
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https://hospitalitytech.com/mcdonalds-rolls-out-dynamic-yields-drive-thru-tech ↩
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https://www.cio.inc/blogs/mcdonalds-bets-on-ai-while-battling-ghost-123456-p-3964 ↩
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https://www.wcnc.com/article/news/local/connect-the-dots/what-to-know-about-ai-at-fast-food-restaurants/275-22aec7b4-5f22-467d-a099-f9b91917ebf1 ↩
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https://www.deseret.com/2021/11/3/22760047/mcdonalds-is-using-ai-for-drive-thru-ordering-facial-recognition/ ↩
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https://www.restaurantbusinessonline.com/technology/mcdonalds-faces-lawsuit-over-its-voice-recognition-technology ↩
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https://www.prnewswire.com/news-releases/mcdonalds-and-google-cloud-announce-strategic-partnership-to-connect-latest-cloud-technology-and-apply-generative-ai-solutions-across-its-restaurants-worldwide-302006915.html ↩
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https://corporate.mcdonalds.com/corpmcd/our-stories/article/mcd-google-cloud-announce-partnership.html ↩ ↩2
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https://www.ciodive.com/news/McDonalds-Google-Distributed-Cloud-VertexAI-partership/701901/ ↩
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https://www.datacenterdynamics.com/en/news/mcdonalds-deploys-google-distributed-cloud-at-restaurants/ ↩
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https://www.datacenterdynamics.com/en/news/google-aws-win-12-billion-israel-nimbus-tender-for-cloud-services/ ↩ ↩2
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https://www.business-humanrights.org/en/latest-news/israelopt-mcdonalds-sales-hit-by-boycotts-following-israel-based-franchisee-giving-free-meals-to-israeli-soldiers/ ↩ ↩2
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https://www.ohchr.org/en/press-releases/2025/09/un-human-rights-office-updates-database-businesses-involved-israeli ↩
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https://www.ohchr.org/en/documents/country-reports/ahrc5923-economy-occupation-economy-genocide-report-special-rapporteur ↩
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https://www.business-humanrights.org/en/latest-news/mcdonalds-refuses-to-operate-in-jewish-settlement-israel-occupied-palestinian-territories/ ↩
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https://edition.cnn.com/2024/01/05/food/mcdonalds-middle-east-business-war ↩
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https://www.foxbusiness.com/fox-news-food-drink/mcdonalds-ceo-misinformation-israel-hamas-war-hurting-companys-middle-east-business ↩
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https://www.qsrmagazine.com/story/mcdonalds-feels-global-impact-from-israel-and-palestine-war/ ↩
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https://www.sec.gov/Archives/edgar/data/63908/000006390825000012/mcd-20241231.htm ↩
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https://www.sec.gov/Archives/edgar/data/63908/000155837025004544/mcd-20250520xdef14a.htm ↩
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https://www.aljazeera.com/news/2024/4/5/mcdonalds-buys-all-225-of-israeli-franchise-restaurants-after-boycotts ↩
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https://www.cnbc.com/2024/04/05/israel-boycott-mcdonalds-will-buy-all-225-restaurants-from-franchise.html ↩
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https://fortune.com/2024/04/05/mcdonalds-israel-franchise-acquires-225-restaurants/ ↩
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https://dontbuyintooccupation.org/reports/dont-buy-into-occupation-report-2024/ ↩
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https://dontbuyintooccupation.org/reports/dont-buy-into-occupation-report-2025/ ↩