Wiz Founders Poised to Acquire McDonald's Israel Franchise

The investment group led by the founders of the cybersecurity firm Wiz, including Assaf Rappaport, Yinon Costica, Ami Luttvak, and Roi Reznik, is in advanced negotiations to secure the franchise for McDonald's operations in Israel. While a final agreement has not yet been signed, discussions with McDonald's international management are nearing completion, positioning Rappaport's group as the leading candidate among several prominent Israeli business entities that competed for the franchise.

McDonald's Israel currently operates 235 branches nationwide, generating an estimated annual revenue of approximately 1.7 billion shekels. The search for a new local franchisee began in April 2024, following McDonald's global corporation's acquisition of the Israeli business from Omri Padan and Aloniel Ltd., who had held the franchise for over three decades.

The global purchase, valued at around 2 billion shekels, occurred amidst the "Swords of Iron" war and widespread boycotts against the chain internationally, partly due to the former franchisee's donations and discounts to IDF soldiers. Since the acquisition, the parent company has managed the Israeli operations directly, with the stated intention of finding a new local franchisee, aligning with their global model where approximately 95% of restaurants are operated by franchisees.

Despite the Wiz founders' lack of prior experience in the retail or food sectors, their direct engagement with McDonald's global leadership over recent months has placed them in a near-certain leading position. This move represents a significant expansion of their business ventures beyond technology, following their historic sale of Wiz to Google for $32 billion. The four entrepreneurs have already diversified into media and advertising through their joint investment company, including acquiring control of Channel 13 and holding a 60% stake in Israel Entertainment Group.