developing· Economy· Updated
Businessman Assaf Rappaport Buys McDonald's Israel Franchise for $1 Billion
The co-founders of the Israeli cyber company Waze, led by Assaf Rappaport, are reportedly close to acquiring the McDonald's franchise in Israel for approximately one billion shekels. Rappaport, alongside co-founders Yinon Costica, Ami Lutvak, and Roi Reznick, emerged as the leading candidate in a competitive bidding process.
3 newsrooms · 1 language · since
What happened
- 01Waze co-founders, led by Assaf Rappaport, are close to acquiring the McDonald's franchise in Israel for approximately one billion shekels.
- 02Rappaport secured the franchise rights after outbidding other prominent Israeli business figures, including Uri Max and Yaakov Shahar.
- 03The potential deal follows the historic 32 billion dollar sale of the Israeli cyber company Waze to Google.
- 04McDonald's repurchased its Israeli operations for an estimated two billion shekels in April 2024 amid international boycotts.
- 05The boycotts against the fast-food giant began after the previous Israeli franchisee, Omri Padan, aided IDF soldiers.
- 06McDonald's Israel operates up to 238 branches, about 80 of which are kosher, generating 1.8 billion shekels in annual revenue.
- 07The acquisition at a profit multiple of about five could allow the buyers to fully return their investment within five years.
The potential acquisition follows the massive 32 billion dollar sale of Waze to Google. Rappaport secured the franchise rights after outbidding other prominent Israeli business figures, including Uri Max and Yaakov Shahar. The deal is not yet official, and representatives for McDonald's Israel and Rappaport have declined to comment.
McDonald's has been seeking a new franchisee since April 2024, when the global company repurchased its Israeli operations for an estimated two billion shekels. This repurchase ended a 30-year agreement with Omri Padan, who opened the first Israeli branch in 1993, and came amid international boycotts after the franchise aided IDF soldiers. Since then, the global company has managed the Israeli chain directly.
McDonald's Israel operates between 230 and 238 branches, including approximately 80 kosher locations, and reportedly generates 1.8 billion shekels in annual revenue with profits around 180 million shekels. The acquisition at one billion shekels represents a profit multiple of about five, which could allow Rappaport to see a full return on investment within five years.
Summarized by baba from the reports of 3 newsrooms. Updated
Latest report: TheMarker. Read TheMarker’s originalThe coverage
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