McDonald’s

1. Executive Dossier Summary

Company: McDonald’s Corporation

Jurisdiction: United States (Global HQ: Chicago, Illinois) / Israel (Local HQ: Ga’ash)

Sector: Consumer Discretionary / Quick Service Restaurants (QSR)

Leadership: Chris Kempczinski (CEO), Miles White (Lead Independent Director)

Intelligence Conclusions:

The forensic assessment of McDonald’s Corporation reveals a multinational entity in the midst of a profound, high-velocity structural transformation regarding its relationship with the State of Israel. What was historically characterized as an arm’s-length franchise arrangement—defined by a “developmental license” model that afforded the local operator significant political autonomy—has collapsed into a state of Direct Sovereign Complicity. The pivotal event driving this radical shift was the April 2024 acquisition of Alonyal Limited, the long-standing Israeli master franchisee. This transaction was not merely a commercial consolidation; it was a geopolitical maneuver that converted McDonald’s Corporation from a passive licensor collecting royalties into a direct operator, a major employer, and a primary taxpayer within the Israeli war economy.¹ The corporation has effectively “nationalized” the complicity of its franchisee, absorbing the reputational and operational liabilities directly onto its global balance sheet.

Finding 1: Transition to Active Logistical Sustainment

The audit establishes with high confidence that the Israeli branch engaged in Material Military Enablement during the onset of Operation Swords of Iron in October 2023. The entity did not merely offer charitable support or token gestures; it fully operationalized its supply chain to function as a Forward Logistics Element (FLE) for the Israel Defense Forces (IDF). By converting five specific branches into dedicated production hubs—closed to the public and focused solely on military output—and distributing over 100,000 meals to “soldiers in the field,” assembly zones, and hospitals, McDonald’s Israel effectively integrated itself into the IDF’s Class I (Subsistence) supply chain.3 This surge capacity relieved the logistical burden on the state’s organic catering corps during a critical mobilization window. The subsequent corporate buyback did not dismantle this infrastructure or renounce the actions; it merely transferred the ownership of the assets that facilitated this support to the US parent company.

Finding 2: Structural Integration via “Strategic FDI” and Digital Dependency

Beyond the tangible provision of subsistence to combatants, McDonald’s Corporation serves as a critical conduit for Foreign Direct Investment (FDI) into the Israeli “silicon military” ecosystem. The 2019 acquisition of Dynamic Yield for over $300 million and the subsequent acquisition of Apprente (forming McD Tech Labs) were not standard vendor procurements. They represent “Strategic FDI”—capital injections that validated the Israeli high-tech sector for the broader Fortune 500 market.5 Furthermore, the corporation’s global digital security architecture is “anchored” by a triad of Israeli firms—SentinelOne, Check Point, and Wiz—creating a “risk monoculture.” The security of the global enterprise is now inextricably tethered to the stability and innovation of the Israeli defense-tech sector, creating a dependency where the corporation effectively subsidizes the R&D of firms founded by veterans of Unit 8200.5

Finding 3: The Collapse of “Safe Harbor” and Political Neutrality

A rigorous comparative governance analysis exposes a glaring, systemic double standard in the corporation’s crisis management protocols. When the Russian Federation invaded Ukraine in 2022, McDonald’s executed a “values-based” market exit, fully divesting its assets and enforcing a strict de-branding policy to avoid any association with the aggressor state. Conversely, in response to the Gaza crisis—where its own franchisee was actively sustaining combatant forces amidst allegations of war crimes—the corporation chose Market Consolidation rather than divestment.7 By acquiring the Israeli operations to “protect the brand” from “misinformation,” McDonald’s Corporation prioritized commercial stability over the ethical precedent it set in Russia. This divergence confirms that the corporation applies a tiered governance model where “values” are subordinated to geopolitical alliances, failing the “Safe Harbor” test and institutionalizing its complicity.

Strategic Assessment:

McDonald’s is no longer an “incidental” actor in the Israeli theater. Post-acquisition, it is the Importer of Record, legally responsible for customs and tariffs; the Direct Employer of reservists, responsible for their benefits during deployment; and the Direct Owner of retail branches in occupied East Jerusalem (Pisgat Ze’ev).1 The “Franchisee Defense”—the legal shield used for decades to deflect accountability—is null and void. The corporation is now directly liable for the “settlement laundering” inherent in its agricultural supply chain and the normalization of the occupation through its physical and economic footprint.

2. Corporate Overview & Evolution

Origins & Founders

The genesis of McDonald’s presence in Israel dates back to 1993, initiated not by the corporate parent directly operating restaurants, but through a developmental license granted to Alonyal Limited, a private holding company controlled by Omri Padan. Padan presents a unique and complex forensic profile that obscured the true nature of the brand’s alignment for decades. He was a co-founder of Peace Now (Shalom Achshav), the preeminent Israeli advocacy group historically opposed to the settlement enterprise and advocating for a two-state solution.³

This biographical detail created a “governance mirage” for McDonald’s Corporation. For thirty years, the corporation relied on Padan’s political profile to deflect accusations of complicity from the Boycott, Divestment, Sanctions (BDS) movement. The primary defense was Padan’s strict refusal to open branches in the West Bank settlement of Ariel in 2013, a decision that drew the ire of the Israeli right-wing and settler leaders.⁸ This refusal was cited repeatedly as evidence of the brand’s “ethical boundaries” and adherence to international law regarding the Green Line.

However, a deeper analysis reveals the “Statist” ideology of the Israeli center-left which Padan represents. This ideology draws a sharp, often rigid distinction between the “State” (Pre-1967 borders) and the “Settlements.” While opposing the latter as a political error, this ideology often maintains total, uncritical allegiance to the former’s military apparatus. This distinction collapsed in the wake of the October 7 attacks, when the existential defense of the State (via the IDF) overrode the political nuances of the occupation. Consequently, a “Peace Now” founder mobilized his corporate assets for military sustainment, demonstrating that within the Zionist corporate sphere, military support is a consensus value that supersedes “liberal” political stances.⁷

The early economic history also reveals the “Fry War” of the 1990s. When McDonald’s first entered the market, it attempted to import frozen french fries to maintain global quality standards. This was blocked by the powerful Israeli vegetable growers’ lobby and protectionist government policies, forcing McDonald’s to capitulate and invest approximately $5 million to upgrade a local factory, Tapud, to produce fries domestically.¹ This forced localization created a path dependency: McDonald’s became structurally locked into the local agricultural economy, ensuring that its success would always directly benefit Israeli industrial agriculture, a sector deeply intertwined with land and water appropriation.

Leadership & Ownership (Post-2024)

Following the April 2024 acquisition, the governance structure shifted seismically from local autonomy to centralized US control. The entity “McDonald’s Israel” is no longer a franchisee; it is a Wholly Owned Subsidiary of McDonald’s Corporation.

• Ultimate Beneficial Owner: McDonald’s Corporation (Publicly Traded, NYSE: MCD).
• Operational Control: Chicago Global Headquarters now bears ultimate responsibility for all strategic, operational, and ethical decisions made in Tel Aviv.
• Key Institutional Shareholders:
  • The Vanguard Group (~9.0%): A major shareholder in Elbit Systems and Lockheed Martin.
  • BlackRock (~7.2%): A major shareholder in RTX (Raytheon) and Boeing.
  • State Street: Holds significant positions across the defense sector.

Assessment:

The shareholder composition reveals a “capital loop” or circular financing mechanism. The same institutional investors—Vanguard and BlackRock—who profit from the munitions and defense systems used in the conflict (via holdings in Elbit, Lockheed, Boeing) are the primary beneficiaries of McDonald’s revenue streams. This creates a “conflict-neutral” investment environment where the Board of Directors is structurally disincentivized from pursuing divestment, as the primary owners have overlapping interests in the health of the defense industrial base.1 The profits from the burger sold in Tel Aviv and the missile fired in Gaza ultimately flow into the same diversified portfolios, rendering the “ethical investor” pressure moot at the institutional level.

Analytical Assessment: The “Golden Arches” Theory Demise

The “Golden Arches Theory of Conflict Prevention,” popularized by Thomas Friedman in the late 1990s, posited that countries with McDonald’s franchises would not go to war with one another, as their economies would be too integrated and their middle classes too invested in stability. The events of 2023-2024 have not only disproven this theory; they have inverted it. McDonald’s did not prevent conflict; it became a logistical node within it.

The corporation’s evolution from a “global peace dove”—symbolized by its high-profile exit from Russia to protect its values—to a “combat sustainment auxiliary” in Israel marks the definitive end of its era of perceived commercial neutrality. The Alonyal acquisition confirms that when the brand’s survival is threatened by geopolitical “misinformation” (as the CEO termed the boycott), the corporation will choose deep integration (FDI) over ethical distancing. The brand has transitioned from a symbol of globalization to a symbol of Western hypocrisy in the eyes of the Global South, creating a long-term strategic vulnerability.⁹

3. Timeline of Relevant Events

Date	Event	Significance
1993	McDonald’s enters Israel via Alonyal Ltd (Omri Padan).	Establishment of the “Statist” franchise model; Padan refuses to import fries, leading to the “Fry War” and the establishment of local production (Tapud), embedding the supply chain locally. 1
June 2013	Refusal to open in Ariel Settlement.	Padan cites “long-term policy not to operate across the Green Line.” Establishes the brand’s “Liberal Zionist” defense against BDS and distinguishes the brand from the settler movement. 8
Mar 2019	Acquisition of Dynamic Yield ($300M).	Strategic FDI. McDonald’s injects massive capital into the Israeli tech sector, validating the “Start-Up Nation” narrative and integrating military-adjacent AI into its core global revenue engine. 6
Sep 2019	Acquisition of Apprente.	Formation of McD Tech Labs in Tel Aviv/Silicon Valley. Moves relation from “vendor” to “parent-subsidiary” in R&D, deepening the reliance on Israeli voice-AI talent. 10
Oct 2023	Operation Swords of Iron Mobilization.	Alonyal donates 100,000+ meals to IDF; converts 5 branches to “Forward Logistics Elements” (FLEs). Offers 50% discount to security forces. Marks the pivot to direct military sustainment. 3
Oct 2023	Global Franchise “Civil War.”	Franchises in Oman, Turkey, and Malaysia disavow the Israeli branch; donate to Gaza relief to save local businesses. McDonald’s Malaysia sues BDS Malaysia. 11
Jan 2024	CEO admits “Meaningful Business Impact.”	Chris Kempczinski acknowledges the boycott is hurting sales in the Middle East and France, the first admission of material financial damage from the complicity. 9
Apr 4, 2024	Corporate Acquisition of Alonyal.	McDonald’s Corp signs deal to buy all 225 Israeli restaurants. Transfer of Liability from franchisee to corporation. The “Franchisee Defense” is legally and operationally dissolved. 2
Present	Continued Operations as Direct Owner.	Corporation is now the direct employer, taxpayer, and importer. Operations in East Jerusalem (Pisgat Ze’ev) continue under US ownership. Security discounts persist. 7

4. Domains of Complicity

This section constitutes the core of the forensic assessment. It dissects the corporation’s involvement across four specific domains, providing exhaustive evidence and analysis to substantiate the “High Complicity” classification.

Domain 1: Military & Intelligence Complicity

Goal: To determine if McDonald’s Corporation has engaged in the direct provision of goods, services, or logistical support to the Israeli Ministry of Defense (IMOD) or the Israel Defense Forces (IDF), and to assess the materiality of that support in the context of active conflict.

Evidence & Analysis:

• Tactical Logistics & The “Surge” (Oct 2023):
  The forensic evidence confirms that McDonald’s Israel did not merely “donate food” in a generic charitable capacity; it integrated itself into the military’s logistical tail. The Military Audit 3 reveals that immediately following the mobilization, the company operationalized five specific restaurants for the sole purpose of producing meals for the military. In modern military doctrine, this constitutes the establishment of a Forward Logistics Element (FLE) for Class I (Subsistence) supply.
  The throughput—”thousands of meals every day”—delivered to “drafting areas” and “soldiers in the field” indicates a high level of coordination with the IDF Home Front Command to access closed military zones and assembly areas. This provision of Ready-to-Eat (RTE) meals reduces the logistical burden on the state, allowing the IDF to reallocate its organic logistics assets to the front lines. The specific targeting of “drafting areas” suggests the company facilitated the rapid mobilization of reservists.
• The “Magav” Discount & Corporate Subsidy:
  Beyond the emergency surge, McDonald’s Israel institutionalized a 50% discount for all uniformed security forces (including the IDF and “Magav” Border Police).3 This policy is economically significant. In a high-cost economy like Israel, a 50% reduction in food costs effectively increases the purchasing power of military wages.
  Forensically, this functions as a Corporate Subsidy to the defense sector. By improving the “quality of life” and morale of the personnel enforcing the occupation—specifically the Magav units known for their policing of East Jerusalem and the West Bank—McDonald’s acts as a tertiary support arm. Crucially, even after the corporate acquisition in 2024, reports indicate this policy has not been publicly revoked or dismantled, implying tacit corporate endorsement of this subsidy.
• Structural Infrastructure (Ben Gurion Airport):
  McDonald’s Israel successfully won the tender to operate the food service concessions at Ben Gurion Airport, the state’s primary strategic air transport node. During mobilization events, this airport serves as the critical entry point for reservists returning from abroad and for emergency supplies. Operating the sustenance infrastructure at this node places McDonald’s in the logistical heart of the state’s transport network. The fact that the company fought for this tender against opposition from settler leaders (who wanted to ban them for the Ariel refusal) demonstrates the company’s determination to remain embedded in state infrastructure.3

Counter-Arguments & Assessment:

• Counter-Argument: “Food is a civilian good, not a weapon. Feeding soldiers is charity.”
• Rebuttal: In a total war scenario, logistics are as vital as munitions. The US Army’s own doctrine emphasizes “Morale, Welfare, and Recreation” (MWR) and subsistence as critical combat multipliers. Providing 100,000 meals to active combat units is a material contribution to their operational sustainability. It releases state resources for other uses (e.g., ammunition).
• Counter-Argument: “This was the franchisee, not the Corporation.”
• Rebuttal: As of April 2024, the Corporation is the owner. They bought the asset with its history. Furthermore, they have not de-branded or closed the “FLE” branches, nor have they publicly renounced the discount policy for security forces. The liability has been transferred, not erased.

Analytical Assessment:

High Confidence. The acquisition of Alonyal converted past complicity into present liability. The provision of meals to active combat units constitutes material support. The continued operation under US ownership confirms the prioritization of market presence over neutrality. The scale of the support (100k+ meals) moves this beyond “incidental” to “systemic.”

Named Entities / Evidence Map:

• Alonyal Limited: Former Franchisee (Executor of support).
• IDF Logistics Directorate (Atal): Beneficiary of surge support.
• Magav (Border Police): Specific beneficiary of discount policy, linked to occupation enforcement.
• Ben Gurion Airport Authority: Strategic partner in infrastructure tenders.

Domain 2: Digital & Technological Complicity

Goal: To evaluate McDonald’s reliance on, investment in, and integration with the Israeli technology sector, specifically dual-use technologies originating from the defense intelligence ecosystem, and to determine if this constitutes “Strategic FDI.”

Evidence & Analysis:

• The “Israeli Cyber Stack” Dependency:
  The Digital Audit 5 describes McDonald’s cybersecurity posture not as a diverse portfolio, but as a “risk monoculture” anchored by the Israeli security triad: SentinelOne (Endpoint), Check Point (Network), and Wiz (Cloud).
  • SentinelOne: Founded by Tomer Weingarten, this EDR solution operates at the kernel level of McDonald’s point-of-sale systems. It functions as a “kill switch” for the entire network.
  • Check Point: Founded by Unit 8200 veteran Gil Shwed, it secures the network perimeter.
  • Wiz: Founded by Assaf Rappaport (ex-Unit 8200), it provides cloud visibility.
  • Implication: This is not simple procurement. It is a critical dependency on the “Silicon Wadi” defense ecosystem. McDonald’s global operations cannot function without the continuous service of these firms, which are intimately tied to the Israeli security state. The “dual-use” nature of this tech—developed by military intelligence veterans—means McDonald’s is effectively subsidizing the commercialization of IDF capabilities.
• Strategic FDI: Dynamic Yield & Apprente:
  McDonald’s 2019 acquisition of Dynamic Yield for over $300 million was a watershed moment.6 It was “Strategic FDI”—a direct injection of foreign capital into the Israeli tech sector. This transaction validated the Israeli market for other Fortune 500 buyers, proving that Israeli AI could power global retail. Although sold to Mastercard in 2022, the “decision logic” code—which optimizes the drive-thru experience for millions of customers daily—remains in use. Similarly, the acquisition of Apprente led to the creation of McD Tech Labs, embedding Israeli voice-AI R&D into the corporate structure.10 This moved the relationship from “client-vendor” to “parent-subsidiary,” engaging McDonald’s directly in the Israeli R&D labor market.
• Project Nimbus Alignment:
  The partnership with Google Cloud involves the utilization of the me-west1 region in Tel Aviv.5 This data center region was built as part of “Project Nimbus,” a controversial government contract to provide cloud services to the Israeli military and government. By being a tenant in this specific region, McDonald’s commercial demand helps subsidize the infrastructure used by the state. Furthermore, for its Israeli operations, data residency laws likely compel McDonald’s to store customer data within this jurisdiction, making it accessible to Israeli intelligence warrants.

Counter-Arguments & Assessment:

• Counter-Argument: “Tech companies are global; their Israeli origin is incidental.”
• Rebuttal: The Israeli tech sector is unique in its integration with the military. Firms like Check Point and AnyVision (Oosto) are direct spin-offs of military intelligence capabilities. The personnel flow between Unit 8200 and these firms is continuous. Investing in them directly funds the R&D ecosystem that supports the IDF. McDonald’s did not just buy software; it established R&D labs in Tel Aviv.

Analytical Assessment:

High Confidence. McDonald’s is not just a user; it was a strategic investor. Its “Accelerating the Arches” strategy is fundamentally built on Israeli IP. The “Customer Cap” in the BDS-1000 model limits the score, but the forensic reality is one of absolute structural dependency. The acquisition of Alonyal further deepens this by making McDonald’s the direct owner of the digital infrastructure within the state.

Named Entities / Evidence Map:

• Dynamic Yield: $300M Acquisition (Strategic FDI).
• SentinelOne / Check Point / Wiz: The “Iron Dome” of McDonald’s data security.
• Google Cloud (me-west1): Infrastructure alignment with Project Nimbus.
• Unit 8200: The military intelligence unit that serves as the talent pool for McDonald’s key vendors.

Domain 3: Economic & Structural Complicity

Goal: To map the supply chain and financial flows, determining the extent of “Settlement Laundering,” the role of the “Aggregator Nexus,” and the direct economic contribution to the state via taxes and employment following the acquisition.

Evidence & Analysis:

• The Aggregator Nexus & Winter Sourcing:
  The Economic Audit 1 identifies a critical vulnerability in the European supply chain during the “Winter Window” (December–April). During this period, European production of key crops dips, and McDonald’s Europe sources avocados, citrus, and herbs counter-seasonally. The primary suppliers for this volume are the Israeli giants Mehadrin and Galilee Export.
  • The Mechanism: These aggregators operate packing houses in the occupied Golan Heights and Jordan Valley. They openly commingle produce from illegal settlements (e.g., Tomer, Naomi) with produce from inside the Green Line.
  • The Breach: McDonald’s logistics partners, Martin Brower and Reynolds, utilize AI-led planning but have no publicly evidenced “No Settlement Produce” exclusion protocol. Therefore, there is a high probability that “Fruit Bags” (grapes/apples) or side salads sold in London or Paris during Q1 contain settlement-grown produce laundered under the “Produce of Israel” label. This turns every European customer into an unknowing financier of the settlement enterprise.
• The Tnuva-Settlement Feedback Loop:
  Domestically, McDonald’s Israel sources dairy from Tnuva, which holds a 70% market share. Tnuva sources raw milk from settlement dairies (e.g., Shadmot Mehola, Kalia). This milk is mixed at the Rehovot dairy.
  • Forensic Conclusion: It is chemically impossible to separate the “occupation” from the “cheeseburger” in McDonald’s Israel. The milk is “commingled” at the molecular level. Every purchase subsidizes Tnuva, which in turn provides the guaranteed revenue stream that sustains the settlement dairy farms.³
• Direct Sovereign Complicity (The Acquisition):
  By acquiring Alonyal, McDonald’s Corp became the Importer of Record. It now pays corporate tax directly to the Israeli Tax Authority, contributing to the state’s fiscal budget during wartime. It employs 5,000+ staff, managing their reserve duty benefits and ensuring their economic security while they are deployed. This shifts the relationship from “Trade” (Royalties) to “Integration” (Direct Operation). The corporation is now a stakeholder in the resilience of the Israeli economy.

Counter-Arguments & Assessment:

• Counter-Argument: “McDonald’s Israel sources 80% locally; they support local farmers, not settlements.”
• Rebuttal: In the Israeli agricultural economy, “local” includes the settlements. The water resources and supply chains are integrated. Without a specific, audited segregation program (which does not exist), “local sourcing” implies settlement sourcing. The “Fry War” history shows how the state forced McDonald’s to localize, trapping it in this complicity.

Analytical Assessment:

High Confidence. The supply chain is deeply permeable to settlement goods. The move to direct ownership creates a high-proximity economic link. The “Aggregator Nexus” facilitates the export of settlement produce to McDonald’s global markets, creating a risk of cross-border contamination of the supply chain with proceeds of crime (under international law definitions of settlement goods).

Named Entities / Evidence Map:

• Mehadrin / Galilee Export: Settlement-laundering aggregators.
• Tnuva: Dairy supplier integrated with settlement farms.
• Martin Brower: Logistics partner with visibility but no exclusionary protocol.
• Tapud: Potato supplier (Result of the “Fry War”).

Domain 4: Political & Ideological Complicity

Goal: To analyze the corporation’s governance response to the conflict, its lobbying activities, and the specific “Statist” ideology that led to the “Collapse of Commercial Neutrality.”

Evidence & Analysis:

• The “Safe Harbor” Failure (Russia vs. Israel):
  The Political Audit 7 reveals a damning, quantifiable double standard in the corporation’s crisis management.
  • Russia (2022): The invasion of Ukraine was deemed “inconsistent with our values.” Result: Market Exit and De-branding (sale to local operator, removal of Arches). The corporation accepted a total write-off to maintain ethical consistency.
  • Israel (2023-24): The active sustenance of combat troops by the franchisee was labeled a “business impact” caused by “misinformation.” Result: Acquisition and Brand Protection. The corporation invested capital to stay in the market.
  • Inference: This “Geopolitical Tiered Governance” suggests that Palestinian life does not trigger the same ethical “force majeure” clause as Ukrainian life. The corporation is willing to absorb financial loss to leave an adversary’s market, but willing to invest capital to stabilize an ally’s market, even when the ally’s actions pose severe reputational risks.
• The “Statist” Paradox of Pisgat Ze’ev:
  While Omri Padan refused to open in Ariel (West Bank), the network operates in Pisgat Ze’ev and Ramot.3 These are settlements in occupied East Jerusalem.
  • Significance: This aligns with the Israeli domestic consensus (which annexes East Jerusalem) rather than International Law (which recognizes it as occupied). By operating here, McDonald’s normalizes the annexation. The refusal to open in Ariel was a political gesture to appease the “Liberal Zionist” conscience; the presence in Pisgat Ze’ev is the operational reality that validates the occupation of Jerusalem.
• Lobbying & PAC Activity:
  The McDonald’s PAC donates to US leadership, including House Minority Leader Hakeem Jeffries and Speaker Mike Johnson.7 While ostensibly “bipartisan” to secure tax and labor interests, this spending underwrites the legislative stability of the military-industrial relationship. By funding the architects of unconditional military aid, McDonald’s cannot decouple its corporate treasury from the geopolitical consequences of that aid.
• The Franchise Civil War:
  The audit highlights the “Franchise Civil War” where operators in Oman, Turkey, and Malaysia were forced to publicly disavow the Israeli branch to save their businesses.11 McDonald’s Malaysia even resorted to “lawfare,” suing BDS Malaysia. This internecine conflict demonstrates that the corporation lost control of its brand narrative, forcing the acquisition as a containment strategy.

Counter-Arguments & Assessment:

• Counter-Argument: “The acquisition was to neutralize the franchisee’s politics.”
• Rebuttal: If the goal was neutrality, they would have closed the branches (Russia model). Buying them keeps the “free meals” infrastructure alive, just under new management. It effectively “bailed out” the controversial operator, ensuring he exited with a massive payout rather than a business failure.

Analytical Assessment:

High Confidence. The “Collapse of Commercial Neutrality” is evident. The corporation has chosen to own the political risk rather than divest from it. The double standard regarding Russia provides the clearest forensic evidence of ideological bias.

Named Entities / Evidence Map:

• Pisgat Ze’ev Branch: Evidence of operation on occupied land.
• McDonald’s PAC: Funding of pro-Israel legislative consensus.
• Omri Padan: The “Peace Now” founder who militarized the brand.
• BICC (British-Israel Chamber of Commerce): Historical tie to normalization efforts.

5. BDS-1000 Classification

Results Summary:

• Final Score: 566
• Tier: Tier C (High Complicity)
• Justification: McDonald’s presents a profile of “High Structural Integration.” While not a weapons manufacturer, its acquisition of the Israeli market makes it a direct economic actor with “Sovereign Liability.” It functions as a logistical auxiliary during war (Military), a strategic investor in dual-use tech (Digital), and a direct normalizer of settlement economics (Economic). The score is heavily driven by the Proximity (P) score of 9.0+ across all domains due to the shift to direct corporate ownership.

BDS-1000 Scoring Matrix – McDonald’s Corporation

Domain	I	M	P	V-Domain Score
Military (V-MIL)	3.8	5.5	9.2	2.98
Economic (V-ECON)	6.5	7.8	9.0	6.50
Political (V-POL)	6.5	6.5	9.0	6.03
Digital (V-DIG)	3.8	8.5	9.0	3.80

V-Domain Calculations:

• V-MIL:
  $$3.8 \times \min(5.5/7, 1) \times \min(9.2/7, 1) = 3.8 \times 0.785 \times 1 = 2.98$$
  • Note: Impact is limited by the “Logistical Sustainment” band (food vs. weapons), but Proximity is maximized by direct ownership.
• V-ECON:
  $$6.5 \times \min(7.8/7, 1) \times \min(9.0/7, 1) = 6.5 \times 1 \times 1 = 6.50$$
  • Note: High Impact due to Strategic FDI and integration with settlement agriculture.
• V-POL:
  $$6.5 \times \min(6.5/7, 1) \times \min(9.0/7, 1) = 6.5 \times 0.928 \times 1 = 6.03$$
  • Note: High Impact due to “Militaristic Branding” (Free Meals campaign) and double standards.
• V-DIG:
  $$3.8 \times \min(8.5/7, 1) \times \min(9.0/7, 1) = 3.8 \times 1 \times 1 = 3.80$$
  • Note: Capped by the “Customer Rule” (using tech vs. selling tech), despite extreme dependency.

Final Composite Calculation:

Using the OR-dominant formula with a side boost:

• $V_{MAX}$: 6.50 (Economic)
• $Sum_{OTHERS}$: $2.98 + 6.03 + 3.80 = 12.81$
• Formula:
  $$BRS_{Score} = ((V_{MAX} + (Sum_{OTHERS} \times 0.2)) \div 16) \times 1000$$
• Calculation:$$BRS_{Score} = ((6.50 + (12.81 \times 0.2)) \div 16) \times 1000$$
  $$BRS_{Score} = ((6.50 + 2.562) \div 16) \times 1000$$
  $$BRS_{Score} = (9.062 \div 16) \times 1000$$
  $$BRS_{Score} = 0.566375 \times 1000$$
• Final Score: 566

Grade Classification:

Based on the score of 566, the company falls within Tier C: High Complicity.

6. Recommended Action(s)

1. Targeted Boycott & Public Exposure (The “Winter Sourcing” Campaign):

The forensic evidence supports a continued and highly specific consumer boycott. The acquisition of Alonyal did not “fix” the complicity; it nationalized it. Activists and consumers should focus messaging on the “Double Standard” (Russia vs. Gaza) to highlight corporate hypocrisy.

Specifically, a targeted campaign during the “Winter Sourcing Window” (December–April) is recommended. Consumers in the UK and Europe should be alerted that “Fruit Bags” (grapes/apples) and side salads sold during this period likely contain settlement produce laundered by Mehadrin and Galilee Export. Demanding “Country of Origin” transparency on these specific items will pressure the supply chain.

2. Institutional Divestment Pressure (The HRIA Demand):

Shareholders, particularly those with ESG mandates, should be lobbied to demand an Independent Human Rights Impact Assessment (HRIA). The Board must answer specifically for:

• The continued operation of branches in East Jerusalem settlements (Pisgat Ze’ev and Ramot), which violates the company’s own stated “Green Line” policy (based on the Ariel refusal).
• The lack of supply chain segregation for Tnuva (dairy) and Mehadrin (produce), which exposes the company to legal risks regarding the proceeds of settlement crime.
• The financial logic of the “Safe Harbor” failure: Why was the risk in Russia sufficient for exit, but the risk in Israel sufficient for investment?

3. Supply Chain Audit Demand:

Civil society groups should demand that McDonald’s Europe (and specifically its logistics partner Martin Brower) publish a supply chain audit verifying that no goods from packing houses in the Golan Heights or Jordan Valley are entering the European distribution network. The current reliance on AI-led planning without ethical exclusionary protocols is insufficient defense against settlement laundering.

4. Monitoring of “McD Tech Labs” and Digital Ties:

Continued surveillance of the corporation’s R&D investments is required. Any renewed partnerships with Israeli defense-adjacent firms—or the expansion of the Google Cloud “Project Nimbus” usage—should be highlighted as evidence of the corporation subsidizing the state’s military-digital complex. The “dual-use” nature of the technology stack (SentinelOne, Check Point) implies that McDonald’s cybersecurity budget is effectively a revenue stream for the Israeli defense sector’s commercial spin-offs.

Works cited

1. McDonald’s economic Audit
2. Alonyal Limited Announces Agreement to Sell McDonald’s Business in Israel to McDonald’s Corporation, accessed December 8, 2025, https://corporate.mcdonalds.com/corpmcd/our-stories/article/alonyal-limited-announces-agreement-to-sell-mcdonaldsbusiness-inisrael-to-mcdonaldscorporation.html
3. McDonald’s military Audit
4. McDonald’s franchises in Middle East at odds over Israel-Hamas war – Al Jazeera, accessed December 8, 2025, https://www.aljazeera.com/economy/2023/10/20/mcdonalds-franchises-in-middle-east-at-odds-over-israel-hamas-war
5. McDonald’s digital Audit
6. Dynamic Yield: Scaling Personalized Shopping from McDonald’s to MasterCard – Digital Innovation and Transformation, accessed December 8, 2025, https://d3.harvard.edu/platform-digit/submission/dynamic-yield-scaling-personalized-shopping-from-mcdonalds-to-mastercard%EF%BF%BC%EF%BF%BC/
7. McDonald’s Political Audit
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