US-based coffee chain Starbucks' sales in Malaysia fell 36% year-on-year in the financial year ended in June due to protests and boycotts of Israel's attacks on Gaza, according to financial results the Malaysian franchiser Berjaya Food Berhad released on Wednesday.
In the whole financial year ended in June 2025, Starbucks' revenue was down to 477 million Malaysian ringgits ($113 million).
The firm also saw a net loss of $69 million in the whole financial year.
In the April-June period, the company's revenue was down to $27.4 million in the second quarter.
The coffee chain posted a total loss of $44.4 million in the same period.
"The lower revenue was primarily attributed to the prolonged impact of the ongoing sentiment related to the Middle East conflict, which affected market dynamics and influenced customers' spending patterns," Berjaya Food said in a statement.
Demands to boycott western firms that have alleged connections or aids to Israel have grown increasingly vocal amid its ongoing war against the besieged Gaza Strip.
Israel has killed nearly 63,000 Palestinians, and led to mass starvation and widespread destruction across the coastal enclave.
The country also faces a genocide case at the International Court of Justice for its war on Gaza.
