logo
McDonald's faces sales slump, consumer boycott, and mounting criticism

McDonald's faces sales slump, consumer boycott, and mounting criticism

McDonald's golden arches behind a throng of people taking photographs
U.S.A.: McDonald's has been absorbed in a chain of hurdles that have smeared its golden arches. Patrons resisted after the colossal fast-food chain noticeably increased its food prices during a time of spiralling inflation. The repercussion deepened when a brief E. coli epidemic hit several McDonald's outlets in October, throwing consumer confidence off-balance even further. Notwithstanding the introduction of new offers and menu changes, McDonald's saw its sales slide in several successive financial periods.
The descending trend persisted into 2025. In its first-quarter revenues statement, McDonald's indicated a 3.6% year-over-year decrease in U.S. equivalent sales. Operating income also dropped to 3%, and buyer foot traffic weakened by 2.6%, according to Placer.ai as reported recently in an article published by The Street. CEO Chris Kempczinski ascribed the low performance to a combination of commodity price increases, geopolitical pressures, and diminishing consumer preferences, calling it a rough atmosphere for the fast-food business. National boycott looms
Today, McDonald's is confronted with a new challenge — a nationwide boycott planned by activist group The People's Union USA . Slated to take place from June 24 to June 30, the boycott targets McDonald's for what the group describes as manipulative business practices and ethical flaws.
In a buzz-worthy Instagram post, the group's organiser, John Schwarz, charted five key criticisms. These include allegations that McDonald's has lower tax payments than many of its frontline employees, engages in price squeezing even with high earnings, and has an extensive record of anti-union behaviour. Schwarz also complained about the company's international supply chain practices, alluding to environmental ruin and run-down labour settings. Boycott movement gaining momentum
The People's Union USA has been stepping up its efforts to challenge corporate control via systematised economic embargoes. Since February, it has aimed at household names such as Walmart, Amazon, Target, and General Mills — and McDonald's is just the most recent addition to its growing list. The group asserts that its objective is to 'expose corruption and exploitation'.
With the looming boycott week, McDonald's will be confronted with more than just another sales plummet. It could have repercussions for its public image, labour practices, and customer relationships. See also Gyms and tuition centres replace Singapore cinemas amid closures

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Musk's xAI raises $5 billion each in fresh debt and equity, Morgan Stanley says
Musk's xAI raises $5 billion each in fresh debt and equity, Morgan Stanley says

CNA

timean hour ago

  • CNA

Musk's xAI raises $5 billion each in fresh debt and equity, Morgan Stanley says

Elon Musk's xAI has completed a $5 billion debt raise alongside a separate $5 billion strategic equity investment, Morgan Stanley said on Monday, as the startup looks to expand its AI infrastructure through data centres amid intensifying competition in the industry. The $5 billion raised in debt consists of financing of secured notes and term loans, Morgan Stanley in a statement posted on social media platform X. The deal was oversubscribed and included prominent global debt investors, it added. Reuters earlier reported that xAI was on track to close on a $5 billion debt raise led by Morgan Stanley, despite tepid investor demand. In a separate report, Bloomberg News said that xAI was in talks to raise $4.3 billion through an equity investment on top of its $5 billion debt funding plans. XAI did not immediately respond to a Reuters request for comment outside regular business hours. The proceeds will support xAI's continued development of AI solutions, a data center and its flagship Grok platform, the bank said. Apart from selling debt, xAI has also been in talks to raise about $20 billion in equity, which would value the company at more than $120 billion, with some investors placing valuations as high as $200 billion.

Trump blames AT&T for tech issues in a call, AT&T says its network did not cause disruption
Trump blames AT&T for tech issues in a call, AT&T says its network did not cause disruption

CNA

time2 hours ago

  • CNA

Trump blames AT&T for tech issues in a call, AT&T says its network did not cause disruption

WASHINGTON :U.S. President Donald Trump on Monday blamed AT&T for technical issues in a conference call he held with American faith leaders but the wireless carrier said its analysis showed the disruption was not caused by its network. Trump urged the wireless carrier's boss to handle the situation and also said his administration may use another carrier's service in other calls. "I'm doing a major Conference Call with Faith Leaders from all over the Country, and AT&T is totally unable to make their equipment work properly," Trump wrote on social media about the call on Monday afternoon. "This is the second time it's happened. If the Boss of AT&T, whoever that may be, could get involved — It would be good. There are tens of thousands of people on the line!" Trump did not elaborate on the specifics of the issue. AT&T said on X its initial analysis "indicates the disruption was caused by an issue with the conference call platform, not our network." The company also said it was working to better understand the issue to help avoid such disruptions in the future. Trump apologized to faith leaders for what he described as a long wait on the conference call. "We may have to reschedule the call, but we'll use another carrier the next time," Trump said on social media. AT&T shares pared gains very briefly after Trump's post and then recovered. During his first White House term, Trump criticized the company, which at the time owned CNN, about the news channel's coverage of his administration. Earlier this month, Trump's family business licensed its name to launch a U.S. mobile service and a $499 smartphone, calling it Trump Mobile, in a deal brokered by the president's children.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store