By Jonathan Stempel<\/p>\n
OMAHA, Nebraska, May 4 (Reuters) – Middle East tensions including war in Iran have led Berkshire Hathaway-owned Dairy Queen to put expansion plans in the region on hold, as cautious \u200cfranchisees address supply-chain disruptions, the restaurant chain’s chief executive said.<\/p>\n
Speaking during Berkshire’s annual shareholder weekend \u200cin early May, Chief Executive Troy Bader said shipping restrictions through the Strait of Hormuz require finding alternative routes to ship products that \u200bcannot be obtained locally.<\/p>\n
Dairy Queen operates in Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates, according to its website, and had expressed interest in entering Saudi Arabia.<\/p>\n
“Where is Middle East expansion now? We are still highly interested, but right now we are more in a hold position,” Bader said.<\/p>\n
“Franchisees over there are saying they want to \u200cwait to see what happens,” he \u2060continued. “It’s hard to start up a new brand in any new country. You have to reach scale quickly.”<\/p>\n
LOWER-INCOME DINERS ‘WEARY’ OF INFLATION<\/p>\n
International Dairy Queen, the Bloomington, Minnesota-based company’s full name, has \u2060more than 7,900 stores in 20 countries.<\/p>\n
Its fastest expansion has been in China, where it has more than 1,800 stores and same-store sales grew 10% last year. Total sales rose about 3% in 2025 to nearly $6.6 billion.<\/p>\n
Bader said Dairy \u200bQueen’s \u200bU.S. customer base has begun to “segment,” with wealthier diners continuing \u200bto buy Blizzard ice cream treats, burgers \u200cand chicken strips, while lower-income consumers feel the pinch from elevated borrowing costs and inflation at a nearly three-year high.<\/p>\n
“Many are becoming a little weary,” Bader said. “We’ve had persistent inflation, and interest rates remain high. Most recently, we’ve seen a significant and fast increase in fuel prices.” For some of them, Dairy Queen offers $5 mix-and-match food options and $7 meal deals.<\/p>\n
AI WITH YOUR ICE CREAM<\/p>\n