Latest news with #economicblackout
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
CTV News
24-06-2025
- Business
- CTV News
The ‘economic blackout' movement now wants you to boycott McDonald's, starting today
A grassroots movement is calling on the boycott of McDonald's for the next week. (Charly Triballeau/AFP/Getty Images via CNN Newsource) NEW YORK — McDonald's is the latest target of a grassroots 'economic blackout' campaign that has previously targeted other major companies with mixed success. The People's Union USA, led by John Schwarz, is now calling on people to boycott McDonald's beginning Tuesday through next Monday, explaining in an Instagram post that he's demanding 'fair taxes, an end to price gouging, real equality, and corporate accountability.' 'This is a show of strength, solidarity and people powered change,' Schwarz wrote. 'Let them feel it. Let them hear us.' McDonald's did not immediately respond to comment about the boycott. Boycotts are notoriously difficult to organize, and it's not clear that the effort will make a dent in McDonald's bottom line. Nevertheless, the spotlight is shining on McDonald's at a less than ideal time for the company, which recently reported its second consecutive quarter of sales declines. Customers, especially in low- and middle-income brackets, have pulled back their spending amid economic uncertainty. McDonald's has faced backlash from some customers about its prices. The value perception of the chain has dimmed among its cash-conscious customers: The average price of items has soared about 40 per cent since 2019. The company says this is in line with its rising costs. Schwarz didn't immediately respond for comment. His website calls the group 'a grassroots movement dedicated to economic resistance, government accountability, and corporate reform,' adding that the 'goal is to unite Americans against the corruption and greed that has kept us struggling for decades.' Boycott background Schwarz garnered national attention earlier this year when his group called for an 'economic boycott' on Walmart, Target and Amazon for various reasons, including the roll-back of diversity, equality and inclusion (DEI) programs. In January, McDonald's ended some of its its specific diversity goals, including requiring its suppliers to commit to certain DEI targets. The chain also stopped participating in external surveys that measure corporate diversity, as well as changed the name of its diversity team to the Global Inclusion Team — a common practice for many other companies that have rolled back diversity pledges. Companies have changed their views on DEI following the reelection of U.S. President Donald Trump, who opposes the efforts, and a Supreme Court ruling against affirmative action. Online pressure, legal threats and customer opposition have led many companies, including Walmart, Ford, Harley-Davidson, John Deere and others to make changes to their DEI initiatives. Still, Schwarz's bark might be louder than his bite. A March boycott against Amazon had negligible affect to its bottom line, with the company posting better-than-expected earnings results during that quarter. The 'economic blackout' effort is relatively uncoordinated and nebulous. Experts on consumer boycotts and corporate strategy are dubious that it will make a dent in the bottom lines of the massive companies that it targets, let alone the vast U.S. economy. However, a 40-day boycott against Target led by megachurch pastor Rev. Jamal Bryant, has been more fruitful. Sales fell last quarter, driven in part by customer backlash to Target's reversal on its DEI programs, the company admitted. By Jordan Valinsky, CNN
CNN
24-06-2025
- Business
- CNN
The ‘economic blackout' movement now wants you to boycott McDonald's, starting today
McDonald's is the latest target of a grassroots 'economic blackout' campaign that has previously targeted other major companies with mixed success. The People's Union USA, led by John Schwarz, is now calling on people to boycott McDonald's beginning Tuesday through next Monday, explaining in an Instagram post that he's demanding 'fair taxes, an end to price gouging, real equality, and corporate accountability.' 'This is a show of strength, solidarity and people powered change,' Schwarz wrote. 'Let them feel it. Let them hear us.' McDonald's did not immediately respond to comment about the boycott. Boycotts are notoriously difficult to organize, and it's not clear that the effort will make a dent in McDonald's bottom line. Nevertheless, the spotlight is shining on McDonald's at a less-than-ideal time for the company, which recently reported its second consecutive quarter of sales declines. Customers, especially in low and middle income brackets, have pulled back their spending amid economic uncertainty. McDonald's has faced backlash from some customers about its prices. The value perception of the chain has dimmed among its cash-conscious customers: The average price of items has soared about 40% since 2019. The company says this is in line with its rising costs. Schwarz didn't immediately respond for comment. His website calls the group 'a grassroots movement dedicated to economic resistance, government accountability, and corporate reform,' adding that the 'goal is to unite Americans against the corruption and greed that has kept us struggling for decades.' Schwarz garnered national attention earlier this year when his group called for an 'economic boycott' on Walmart, Target and Amazon for various reasons, including the roll-back of diversity, equality and inclusion (DEI) programs. In January, McDonald's ended some of its its specific diversity goals, including requiring its suppliers to commit to certain DEI targets. The chain also stopped participating in external surveys that measure corporate diversity, as well as changed the name of its diversity team to the Global Inclusion Team — a common practice for many other companies that have rolled back diversity pledges. Companies have changed their views on DEI following the re-election of President Donald Trump, who opposes the efforts, and a Supreme Court ruling against affirmative action. Online pressure, legal threats and customer opposition have led many companies, including Walmart, Ford, Harley-Davidson, John Deere and others to make changes to their DEI initiatives. Still, Schwartz's bark might be louder than his bite. A March boycott against Amazon had negligible affect to its bottom line with the company posting better-than-expected earnings results during that quarter. The 'economic blackout' effort is relatively uncoordinated and nebulous. Experts on consumer boycotts and corporate strategy are dubious that it will make a dent in the bottom lines of the massive companies that it targets, let alone the vast US economy. However, a 40-day boycott against Target led by megachurch pastor Rev. Jamal Bryant, has been more fruitful. Sales fell last quarter, driven in part by customer backlash to Target's reversal on its DEI programs, the company admitted.
CNN
24-06-2025
- Business
- CNN
The ‘economic blackout' movement now wants you to boycott McDonald's, starting today
McDonald's is the latest target of a grassroots 'economic blackout' campaign that has previously targeted other major companies with mixed success. The People's Union USA, led by John Schwarz, is now calling on people to boycott McDonald's beginning Tuesday through next Monday, explaining in an Instagram post that he's demanding 'fair taxes, an end to price gouging, real equality, and corporate accountability.' 'This is a show of strength, solidarity and people powered change,' Schwarz wrote. 'Let them feel it. Let them hear us.' McDonald's did not immediately respond to comment about the boycott. Boycotts are notoriously difficult to organize, and it's not clear that the effort will make a dent in McDonald's bottom line. Nevertheless, the spotlight is shining on McDonald's at a less-than-ideal time for the company, which recently reported its second consecutive quarter of sales declines. Customers, especially in low and middle income brackets, have pulled back their spending amid economic uncertainty. McDonald's has faced backlash from some customers about its prices. The value perception of the chain has dimmed among its cash-conscious customers: The average price of items has soared about 40% since 2019. The company says this is in line with its rising costs. Schwarz didn't immediately respond for comment. His website calls the group 'a grassroots movement dedicated to economic resistance, government accountability, and corporate reform,' adding that the 'goal is to unite Americans against the corruption and greed that has kept us struggling for decades.' Schwarz garnered national attention earlier this year when his group called for an 'economic boycott' on Walmart, Target and Amazon for various reasons, including the roll-back of diversity, equality and inclusion (DEI) programs. In January, McDonald's ended some of its its specific diversity goals, including requiring its suppliers to commit to certain DEI targets. The chain also stopped participating in external surveys that measure corporate diversity, as well as changed the name of its diversity team to the Global Inclusion Team — a common practice for many other companies that have rolled back diversity pledges. Companies have changed their views on DEI following the re-election of President Donald Trump, who opposes the efforts, and a Supreme Court ruling against affirmative action. Online pressure, legal threats and customer opposition have led many companies, including Walmart, Ford, Harley-Davidson, John Deere and others to make changes to their DEI initiatives. Still, Schwartz's bark might be louder than his bite. A March boycott against Amazon had negligible affect to its bottom line with the company posting better-than-expected earnings results during that quarter. The 'economic blackout' effort is relatively uncoordinated and nebulous. Experts on consumer boycotts and corporate strategy are dubious that it will make a dent in the bottom lines of the massive companies that it targets, let alone the vast US economy. However, a 40-day boycott against Target led by megachurch pastor Rev. Jamal Bryant, has been more fruitful. Sales fell last quarter, driven in part by customer backlash to Target's reversal on its DEI programs, the company admitted.
