Starbucks CEO Brian Niccol admitted that the company's boycott over Israel's genocide in the Gaza Strip is having a very negative impact on the brand.

The Malaysian boycott against Israel has forced Starbucks to temporarily close 50 of its 408 stores in the country. The company's sales halved, and it lost $20.5 million in the first half of the year.

Global sales at US coffee chain Starbucks fell 7 percent in the July-September quarter, the third consecutive quarter of declines. At the same time, earnings per share decreased by 25% compared to the same period last year.

American restaurant chain KFC has temporarily closed 108 of its branches in Malaysia following a boycott launched in response to Israel's attacks on the Gaza Strip. Earlier, KFC used the phrase "Sorry, no tentacles here, but finger-licking good chickens" in an ad campaign. These words were taken as a mockery of the millions of Gaza residents living in tents. McDonald's and Starbucks revenues also fell.

AlShaya Group, which owns the rights to Starbucks in the Middle East, plans to cut more than 2,000 jobs as the Gulf giant suffers a consumer boycott linked to the war in Gaza.

In response to the boycotts, Starbucks said, "Our position is clear. We stand with humanity."