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Yahoo
03-07-2025
- Business
- Yahoo
The McDonald's Boycott Every Investor Needs to Know About
President Donald Trump rode various waves of sentiment to return him to the Oval Office. One of the key areas of contention that got him re-elected was his attack on diversity, equity and inclusion (DEI) initiatives. Soon after his return, Trump swiftly acted to undo many DEI programs in federal agencies. Many companies followed suit, rolling back or eliminating their respective programs. Discover More: Read Next: Consumer sentiment has been balanced, but those upset by actions taken by corporate America have made themselves heard by imposing economic blackouts on firms. McDonald's is the latest company drawing the ire of upset Americans and their stock prices are reflecting that. Here's what investors should know. McDonald's was one of the first companies to roll back its DEI initiatives. 'We are retiring setting aspirational representation goals and instead keeping our focus on continuing to embed inclusion practices that grow our business into our everyday process and operations,' said McDonald's in a letter to its restaurant owners and operators in early January. The company announced numerous other changes to its DEI programs in the letter. Those moves didn't go unnoticed by The People's Union, a grassroots group that supports DEI and corporate responsibility. The group called for a boycott of McDonald's from June 24 to 30. Besides pausing DEI initiatives, the boycott of McDonald's was due to its perceived price gouging, use of tax loopholes, exploitation of workers, corporate greed and political corruption, according to a recent Instagram post. It's arguable whether or not economic blackouts work. However, the boycott of McDonald's couldn't come at a worse time for the company. The fast food chain saw U.S. sales decrease by 3.6% in the first quarter of 2025, making it the worst quarter since the second quarter of 2020. McDonald's serves 26 million customers in the United States daily. That's enough volume to withstand some slumps but given that it has seen same-store sales fall for two consecutive quarters, following it up with another quarter of losses won't look good. McDonald's isn't the only corporation to face economic blackouts. Firms that have faced similar backlashes include Amazon, Target and Walmart. Some faced a one-day boycott on February 28, whereas others faced extended boycotts. Amazon, for one, actually saw an increase in sales on its one-day boycott, according to Newsweek. Similarly, Costco experienced an impressive 22% increase in web traffic on February 28, thanks to its commitment to keeping DEI initiatives. Walmart saw a slight decrease, but Target fared significantly worse. The company faced a 40-day boycott due to rolling back DEI initiatives, and the retailer conceded sales were impacted by the action, according to CNN. Net sales decreased by 2.8% in the first quarter of 2025 versus the same period in 2024. It's debatable whether boycotts work, but the repercussions can vary widely. It won't be clear how McDonald's boycott led by The People's Union will impact sales until it reports its next earnings. Given how the restaurant has fared in recent quarters, investors may need to brace for further lagging sales. More From GOBankingRates 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on The McDonald's Boycott Every Investor Needs to Know About
The Independent
02-07-2025
- Business
- The Independent
Amazon, Starbucks among companies to face boycotts this month over workers' rights and DEI policy changes
Several popular companies are facing boycott calls this month over workers' rights and Diversity, Equity and Inclusion policy changes. The grassroots advocacy group The People's Union USA has pushed for month-long boycotts of Amazon, Starbucks and Home Depot starting July 1. John Schwarz, founder of The People's Union, explained why people are boycotting the companies in a recent Instagram video. He mentioned Amazon Prime Day deals, which will run from July 8 to July 11. ' Behind those illusionary deals are workers who are suffering. They're working in extreme heat on their feet with no time to breathe. They are pushing their bodies to the limit so [Amazon founder] Jeff Bezos can throw a multimillion-dollar wedding in Venice,' Schwarz said. 'That is a man getting rich while the people making it possible are being pushed to the edge, while they barely make a livable wage. ' Bezos and his new bride, Lauren Sánchez, threw an extravagant wedding in Italy last week with a guest list of about 200 people, including politicians, Hollywood A-listers, and international royalty. The couple asked their guests to make donations to support Venice instead of giving them wedding gifts. In September 2024, Amazon announced it was increasing fulfillment and transportation employees' base wages to an average of more than $22 per hour, or $29 per hour when accounting for the value of elected benefits. ' Starbucks is no better. They talk about community and values, but they actually fire workers who are trying to organize and unionize. They have literally shut down entire stores the second that people start coming together to organize,' Schwarz continued. Former Starbucks CEO Howard Schultz denied during a Senate hearing in March 2023 that the company had ever broken federal labor law. ' And then there's Home Depot,' Schwarz said. 'They quietly erased their diversity, equity, and inclusion page as if standing for fairness or for equality or for representation was something to be ashamed of. That was a choice, and they made it loud and clear.' The Home Depot now has a page on its website titled 'WeAreTHD,' which focuses on company culture and workers' opportunities, such as 'competitive wages and benefits.' In a statement to The Independent, a spokesperson for Home Depot said, 'For over 45 years, our business success has been driven by our eight core values, including respect for all people and taking care of our people. 'We're proud to have a culture that welcomes everyone, and we believe it helps us achieve our business goals by supporting associates, building relationships and fostering innovation. As we continually refine our communications, we have been using 'WeAreTHD,' which we have long used to represent the welcoming culture that we've built here.' The Independent has also reached out to Amazon and Starbucks for comment. Schwarz made a follow-up video on July 1, announcing the start of the month-long boycotts. ' We are boycotting Amazon and every company tied to it from Zappos to Whole Foods, to Twitch, to Audible, all of it. We are boycotting Starbucks. We are boycotting Home Depot, and we are holding this entire corrupt system accountable,' he said.
The Independent
01-07-2025
- Business
- The Independent
Here are the companies facing boycotts this month over workers' rights and DEI policy changes
Several popular companies are facing boycott calls this month over workers' rights and Diversity, Equity and Inclusion policy changes. The grassroots advocacy group The People's Union USA has pushed for month-long boycotts of Amazon, Starbucks and Home Depot starting July 1. John Schwarz, founder of The People's Union, explained why people are boycotting the companies in a recent Instagram video. He mentioned Amazon Prime Day deals, which will run from July 8 to July 11. ' Behind those illusionary deals are workers who are suffering. They're working in extreme heat on their feet with no time to breathe. They are pushing their bodies to the limit so [Amazon founder] Jeff Bezos can throw a multimillion-dollar wedding in Venice,' Schwarz said. 'That is a man getting rich while the people making it possible are being pushed to the edge, while they barely make a livable wage. ' Bezos and his new bride, Lauren Sánchez, threw an extravagant wedding in Italy last week with a guest list of about 200 people, including politicians, Hollywood A-listers, and international royalty. The couple asked their guests to make donations to support Venice instead of giving them wedding gifts. In September 2024, Amazon announced it was increasing fulfillment and transportation employees' base wages to an average of more than $22 per hour, or $29 per hour when accounting for the value of elected benefits. ' Starbucks is no better. They talk about community and values, but they actually fire workers who are trying to organize and unionize. They have literally shut down entire stores the second that people start coming together to organize,' Schwarz continued. Former Starbucks CEO Howard Schultz denied during a Senate hearing in March 2023 that the company had ever broken federal labor law. ' And then there's Home Depot,' Schwarz said. 'They quietly erased their diversity, equity, and inclusion page as if standing for fairness or for equality or for representation was something to be ashamed of. That was a choice, and they made it loud and clear.' The Home Depot now has a page on its website titled 'WeAreTHD,' which focuses on company culture and workers' opportunities, such as 'competitive wages and benefits.' In a statement to The Independent, a spokesperson for Home Depot said, 'For over 45 years, our business success has been driven by our eight core values, including respect for all people and taking care of our people. 'We're proud to have a culture that welcomes everyone, and we believe it helps us achieve our business goals by supporting associates, building relationships and fostering innovation. As we continually refine our communications, we have been using 'WeAreTHD,' which we have long used to represent the welcoming culture that we've built here.' The Independent has also reached out to Amazon and Starbucks for comment. Schwarz made a follow-up video on July 1, announcing the start of the month-long boycotts. ' We are boycotting Amazon and every company tied to it from Zappos to Whole Foods, to Twitch, to Audible, all of it. We are boycotting Starbucks. We are boycotting Home Depot, and we are holding this entire corrupt system accountable,' he said.
Yahoo
26-06-2025
- Business
- Yahoo
McDonald's is facing a week-long boycott over its DEI pullback
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. A nationwide boycott of McDonald's is underway and is expected to run through June 30. The protest was organized by grassroots organization The People's Union, which is recommending that consumers avoid the Golden Arches entirely this week, including digital orders. At the center of the organization's ire is McDonald's decision to 'retire' its diversity goals in January and rename its DEI team the Global Inclusion Team. At the time, McDonald's cited a shifting legal landscape created by the United States Supreme Court ruling in Students For Fair Admissions, Inc. v. President and Fellows of Harvard College in June 2023, anticipating that the ruling 'may impact corporations.' The People's Union also notes that the protest is a pushback against practices such as 'tax avoidance' and 'underpaying workers,' outlining its goal as, 'fair taxes, an end to price gouging, real equality, and corporate accountability.' In a statement emailed to Nation's Restaurant News, McDonald's wrote, 'As a brand that serves millions of people every day, McDonald's opens our doors to everyone, and our commitment to inclusion remains steadfast. 'Alongside our 2,000 local franchisees across the U.S., McDonald's provides meaningful work opportunities for over 800,000 restaurant crew, spends millions with local suppliers, and serves as an engine of economic opportunity for local communities. The McDonald's system also generates billions in federal, state, and local taxes annually, and we'll continue to pay our fair share. 'We welcome honest dialogue with the communities we serve, but we're disappointed to see these misleading claims that distort our values and misrepresent our actions. Our focus remains on serving our customers and communities. We're here and ready to serve.' The People's Union has targeted several other major corporations, including Amazon, Home Depot, and Walmart. In July, it is planning an 'economic blackout' of Starbucks. A similar boycott at Target earlier this year coincided with sales and traffic declines at the company, as well as a slashed full-year outlook. In May, executives cited the boycotts as one of the drivers behind the company's downward trends. The People's Union boycotts are a countermovement to a push to end DEI programs led by conservative influencer Robby Starbuck. His cause picked up momentum following that June 2023 Supreme Court ruling, as well as an executive order signed by President Donald Trump in January ending DEI programs in the federal government, creating pressure on private companies. Notably, McDonald's boycott comes at a challenging time as the company has reported two consecutive quarters of sales declines. Contact Alicia Kelso at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
24-06-2025
- Business
- The Independent
Advocacy group boycotts McDonald's for three reasons
A grassroots advocacy group, The People's Union USA, has initiated a week-long boycott of McDonald's, citing concerns over alleged price gouging, unfair labor practices, and tax avoidance. The group accuses McDonald's of silencing workers, blocking union efforts, exploiting supply chains, and engaging in performative diversity initiatives while supporting policies that undermine labor rights. The boycott call follows a period of difficulties for McDonald's, including a past E. coli outbreak, decreasing sales, and criticism for rolling back diversity programs. Democratic senators previously accused McDonald's of price gouging, noting a significant increase in the company's net annual income, though McDonald's denies these allegations. The People's Union USA, which has gained celebrity endorsements and raised substantial funds, is led by John Schwarz, who has a past conviction for disseminating voyeuristic material.
