McDonald's in soup: Why Americans boycotting multinational fast-food giant?

After President Donald Trump issued executive orders pushing back against diversity, equity, and inclusion (DEI) initiatives in the federal government and private sector, several US companies have faced pressure amid growing consumer demands for inclusive and ethical business practices. Recently, McDonald's came under fire due to a consumer-led boycott targeting the fast-food giant for tax avoidance, performative advertising, and halting diversity and inclusion initiatives. The company faced a wave of protests staged by the People’s Union USA, urging consumers to boycott it.

The protest, which began on June 24, has targeted the multinational food chain over a range of corporate practices. “We’re boycotting McDonald’s because they’ve shown time and time again that profit matters more than people,” said John Schwarz, founder of The People’s Union, in a statement to USA TODAY. He slammed the company for avoiding taxes, price gouging, and poor labour conditions, besides failing to follow through on diversity and inclusion initiatives. The group, known for launching economic protests against major corporations, has planned to continue protesting through June 30. 

Why is McDonald's facing a boycott?

On Instagram, Schwarz also listed reasons for the boycott of McDonald’s. “And yes, their DEI efforts feel more like promotional stunts than real systemic change. We’re done funding companies that pretend to stand for something while doing nothing,” he added. Further, he also shared a flyer listing upcoming boycotts against Starbucks, Amazon, Walmart, Home Depot and Lowe’s. He scheduled July 4 for an economic blackout, while between July 1- July 31, there is a scheduled boycott of Starbucks, Amazon and Home Depot. Between August 1 to August 31, the group will target Walmart, McDonald's and Lowe's. 

Earlier, McDonald's faced backlash for scaling back diversity initiatives to align with a broader trend of US corporations revising or withdrawing DEI efforts amid political pressure. Amid criticism, McDonald's US Chief People Officer Jordann Nunn stated that "none of our programming has changed", although the company has updated its DEI language. Meanwhile, Schwarz claimed McDonald's diversity efforts are superficial and lack real systemic change. He criticised the company's DEI initiatives as "promotional stunts". 

McDonald's boycott comes amid financial struggles

The McDonald’s boycott comes at a time when the company is reeling under economic challenges. Reportedly, the company’s US revenue dropped 3.5% in the first quarter, the biggest decline since 2020. In addition, the global sales also witnessed a dip. The stock prices plummeted 10% over the past month. CEO Chris Kempczinski cited economic uncertainty and rising inflation behind the decline. However, he did not comment on the ongoing boycott calls, according to the USA Today report. Despite the protests, no McDonald's locations have been closed.