ISTANBUL

McDonald's said on Thursday it will buy all of its 225 restaurants in Israel after an agreement with franchise Alonyal Limited, which has operated the business for 30 years.

The US fast-food chain faces calls for a boycott since Alonyal gave away thousands of free meals to Israeli forces following Israeli attacks, which have killed more than 33,000 people, mostly women and children, so far.

The fast food giant in a statement said Alonyal employs 5,000 people across the country, all of whom will be retained after the completion of the transaction in the coming months.

"Upon completion of the transaction, McDonald’s Corporation will own Alonyal Limited’s restaurants and operations, and employees will be retained on equivalent terms," it said in a press release.

“McDonald’s remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward,” said Jo Sempels, president of International Developmental Licensed Markets at McDonald’s Corporation.

McDonald’s franchises are often owned and operated locally. Its CEO Chris Kempczinski earlier said the conflict in Gaza was hurting its business.