Irina Shalmor, spokeswoman for McDonald's Israel, said the owners of a planned mall in the Ariel settlement asked McDonald's to open a branch there about six months ago. Shalmor said the chain refused because the owner of McDonald's Israel has a policy of staying out of the occupied territories. The decision was not co-ordinated with McDonald's headquarters in the U.S., she said. The headquarters were not immediately available for comment.

The Israeli branch's owner and franchisee, Omri Padan, is a founder of the dovish group Peace Now, which opposes all settlements and views them as obstacles to peace. The group said Padan is no longer a member.