From a tech empire and media holdings straight to the most successful fast-food chain in Israel: The investment group of the founders of cyber company Wiz – Assaf Rappaport, Yinon Costica, Ami Luttwak, and Roy Reznik – is in advanced stages toward signing a deal to obtain the franchise to operate the McDonald's chain in Israel.
Although an official agreement has not yet been signed, talks with McDonald's international management have reached the final stretch. The group led by Rappaport is currently considered the leading candidate, having prevailed over several of the Israeli economy's most prominent business groups that competed in the quiet tender managed by the global chain.
McDonald's Israel currently has 235 active branches across the country, with an estimated annual sales turnover of approximately NIS 1.7 billion.
The international move that paved the way
The search for a new local franchisee began in April 2024, when an extraordinary move made waves in the local market: Global McDonald's purchased the operations in Israel from Omri Padan and the Alonyal company, which had held the franchise and led the chain in Israel for more than three decades.
The global buyout, estimated at the time at about NIS 2 billion, came against the backdrop of the Swords of Iron war and widespread protests and boycotts imposed on the chain worldwide, among other things following donations and discounts granted by the local franchisee to IDF soldiers. Since the deal, the chain in Israel has been operated directly by the parent company, which made clear in advance its intention to locate a new local franchisee as part of its global model, in which about 95% of restaurants are operated by franchisees.
Despite Rappaport and his partners having no prior experience in the retail or food sectors, the direct talks they conducted in recent months with global McDonald's management paved their path to an almost certain leading position.
For the four entrepreneurs, who made history with the sale of Wiz to Google for $32 billion, this marks another significant step in expanding their business arm into the traditional market.
Through the joint investment company they established, the four have previously entered the media and advertising sectors, including purchasing controlling interest in Reshet 13 and a 60% stake in the Israel Bidur group.