McDonald's DEI Rollback Sparks Boycott: Betrayal of Black Loyalty & Historical Ties

Key Takeaways

Boycott Dates: June 24–30, 2025, organized by The People’s Union USA as part of its "Economic Blackout Tour" .
Core Grievances: Targets McDonald’s for rolling back DEI initiatives, price gouging (40% avg. price hike since 2019), tax avoidance, and suppressing worker unionization .
McDonald’s Defense: Claims DEI programming remains unchanged despite "language adjustments," highlights job creation and tax contributions, and dismisses boycott claims as "misleading" .
Financial Context: Boycott coincides with McDonald’s worst U.S. sales slump since 2020 (3.6% Q1 drop) and a 52% operating profit margin criticized by lawmakers .
Mixed Precedents: Past boycotts (e.g., Target) dented sales, while others (Amazon) showed negligible impact. Outcome hinges on sustained consumer participation .

Why McDonald’s Became the Bullseye

The People’s Union USA’s boycott didn’t emerge in a vacuum. It’s part of a broader wave of consumer pushback against corporations dialing back diversity pledges after Trump’s 2025 executive orders targeting "illegal DEI" . McDonald’s drew specific heat by quietly axing measurable diversity goals for senior leadership and supplier partnerships in January 2025. They rebranded their DEI team as the "Global Inclusion Team"—a move critics slammed as hollow PR .

John Schwarz, the group’s founder, framed it bluntly: "Their DEI efforts feel more like promotional stunts than real systemic change" . But the anger runs deeper than symbolism. Senators like Elizabeth Warren and Bob Casey blasted McDonald’s for "textbook greedflation," noting menu prices soared 40% since 2019 while operating margins hit 52%—the highest among major fast-food chains .

The Straws That Broke the Camel’s Back

Worker Wages: Accusations of lobbying against minimum wage hikes despite 2025’s $1.87 billion quarterly profits .
Tax Tactics: Allegations of exploiting loopholes despite McDonald’s citing "billions" paid in taxes .
Political Backing: Claims the chain supports "figures threatening democracy" .

McDonald’s Counterpunch: Denials and Data

Facing a PR firestorm, McDonald’s response leaned hard on economics. Their statement emphasized creating "meaningful work" for 800,000+ employees and funneling "millions" to local suppliers. They also spotlighted their tax footprint, insisting they pay their "fair share" annually .

On DEI, U.S. HR chief Jordann Nunn conceded "language changes" but stressed core programs stayed intact. "None of our programming has changed", she told a June conference . Critics called this doublespeak—pointing to abandoned supplier diversity mandates and internal audits as proof of retreat .

The company’s real vulnerability? Its sales slump. With U.S. revenue down 3.6% in Q1 and footfall withering, another hit could force concessions. CEO Chris Kempczinski already blamed "economic uncertainty" for the downturn, but Schwarz’s boycott exploits that very frustration .

Perfect Storm: Boycott Meets Business Blues

Bad Timing for McDonald’s:

Two straight quarters of U.S. sales declines—worst since 2020 .
Low/middle-income customers cutting spending amid inflation .
Recent E. coli scandal (linked to onions) already dented brand trust .

Boycott Advantages:

Targets McDonald’s during value-meal promos aimed at cash-strapped diners.
Aligns with Black ex-franchisees’ lawsuit alleging discrimination .

Table: McDonald’s Financial Pressure Points

Boycotts: Bark vs. Bite

History’s mixed on whether consumer boycotts cripple giants. The People’s Union’s March push against Amazon flopped—sales actually grew that quarter . But Target’s 40-day boycott, led by pastor Jamal Bryant, did slash revenue. CEO Brian Cornell cited it as a "headwind" alongside dampened consumer confidence .

Why This One Might Stick

Layered Grievances: Merges DEI outrage with anger over prices/wages—appealing to broader demographics than single-issue campaigns .
Pre-Existing Weakness: McDonald’s is already wobbling; even a 5% sales dip this week could spook investors .
Coalition Building: Support from Black churches and senators amplifies pressure beyond grassroots activists .

Still, Schwarz’s movement lacks Target-boycott scale. Success hinges on converting online buzz into real register avoidance.

What’s Next: Beyond the Golden Arches

The People’s Union isn’t stopping here. Their "Economic Blackout Tour" lists upcoming actions:

July 4: Full spending freeze (no shopping/streaming) .
July: Month-long boycotts of Starbucks, Amazon, and Home Depot .
August: Round two vs. McDonald’s, plus Walmart and Lowe’s .

For McDonald’s, the stakes just got higher. Another sales miss could force DEI reversals or price cuts. As Schwarz taunted: "If serving millions and generating billions truly told the whole story, we wouldn’t be having this conversation" .

FAQs

Q: How long does the boycott last?

A: Officially June 24–30, 2025, but an August reboot is planned .

Q: Can skipping McDonald’s for a week really hurt them?

A: Combined with their existing sales crash? Yes. A 5–10% weekly dip could trigger investor panic .

Q: What’s McDonald’s biggest defense?

A: They stress economic contributions—800k+ jobs, "billions" in taxes, and supply-chain spending .

Q: Are prices really up 40% since 2019?

A: McDonald’s admits to hikes but claims they align with rising costs. Independent analysts confirm the ~40% surge .

Comments

Block Stock Soars 10% on S&P 500 Entry, Replaces Hess Effective July 23, 2025

Key Takeaways S&P 500 Entry : Block (formerly Square) joins the S&P 500 on July 23, 2025 , replacing Hess after its acquisition by Chevron . Market Reaction : Block’s stock surged >10% post-announcement as funds rebalanced portfolios to include it . Challenges Persist : Despite the boost, Block’s 2025 performance remains down 14% YTD due to weak Q1 results and tariff-related macro concerns . Strategic Significance : Entry validates Block’s pivot to blockchain/fintech and accelerates crypto’s mainstream adoption . Next Catalyst : Q2 earnings on August 7 will test whether S&P-driven demand offsets economic headwinds . The Big News: Block Is Joining the S&P 500 Come July 23rd, Block—y’know, the company behind Square and Cash App—steps into the S&P 500. They’re takin’ Hess’s spot, which is exitin’ after Chevron wrapped up that $54 billion buyout. Hess had some juicy oil assets down in Guyana, but Chevron finally closed ...

Cloudflare 1.1.1.1 Outage Report (July 14, 2025): Global DNS Disruption Root Cause Analysis

Key takeaways Global DNS outage : Cloudflare's 1.1.1.1 resolver failed worldwide for 62 minutes on July 14, 2025, due to a configuration error in their service topology . Root cause : A dormant misconfiguration from June 6 linked 1.1.1.1 to a non-production service. When activated, it withdrew critical IP prefixes globally . Traffic impact : UDP/TCP/DoT queries dropped sharply, but DNS-over-HTTPS (DoH) via cloudflare-dns.com stayed stable thanks to separate IPs . Unrelated hijack : Tata Communications (AS4755) advertised 1.1.1.0/24 during the outage, worsening routing issues for some users . Resolution : Cloudflare restored services by 22:54 UTC after reverting configurations and manually re-announcing routes . Why 1.1.1.1 matters for the internet You might not think much about DNS resolvers, but they’re like the phonebooks of the internet. Cloudflare’s 1.1.1.1 launched back in 2018 as a faster, privacy-focused alternative to ISP-provided DNS. ...

High-fructose corn syrup vs. cane sugar in foods: The cost of switching ingredients

Key Takeaways Coca-Cola's potential switch to cane sugar follows political pressure but faces economic hurdles . Price disparity : High-fructose corn syrup costs $0.35/lb vs. cane sugar at $1.01/lb —nearly triple. Farm impact : Eliminating corn syrup could wipe out $5.1B in U.S. farm revenue . Health equivalence : The FDA states no nutritional difference exists between the sweeteners . Consumer cost : Mexican Coke (cane sugar) costs over 60% more than U.S. corn-syrup versions . The President’s Truth Social Bombshell President Trump fired a post into the digital ether. He claimed Coca-Cola agreed to dump high-fructose corn syrup for "REAL Cane Sugar" in U.S. products. The announcement hit like a barstool declaration—loud, abrupt, short on details. Coca-Cola’s response? A terse nod to "new innovative offerings." No confirmation. No timeline. Just corporate speak wrapped in a question mark. The disconnect betwee...

Scale AI Layoffs: 200 Employees Cut as Company Admits GenAI Over-Expansion

Key Takeaways Scale AI cut 200 employees (14% of staff) and 500 contractors weeks after Meta invested $14.3 billion for a 49% stake in the company . Founder Alexandr Wang left to lead Meta’s new AI division , prompting interim CEO Jason Droege to restructure teams citing "excessive bureaucracy" and over-hiring in generative AI . Major clients like Google and OpenAI reduced work with Scale AI following the Meta deal, triggering revenue concerns . Restructuring consolidates 16 specialized teams into 5 core units (code, languages, experts, experimental, audio) to prioritize enterprise and government contracts . The layoffs highlight industry-wide pressure as AI firms face scrutiny over costs, productivity gains, and business sustainability . What Actually Went Down at Scale AI? Scale AI just laid off 200 full-time employees. That’s 14% of their workforce. Plus, they cut ties with 500 contractors globally. The news hit on July 16, 2025, barely a month after Me...

UPS Driver Early Retirement: First Buyout in Company History

Key Takeaways Historic shift : UPS offers first-ever buyouts to union drivers, breaking 117 years of tradition Contract clash : Teamsters call the move "illegal" , claiming it violates job creation promises in their 2023 contract Economic squeeze : Buyouts part of UPS's "Network of the Future" plan to cut costs after losing Amazon business and facing trade pressures Worker uncertainty : Buyouts risk stripping retiree healthcare from drivers who leave early Union defiance : Teamsters urge drivers to reject buyouts and prepare for legal battle The Buyout Blueprint: What UPS Is Offering UPS dropped a bombshell on July 3rd, 2025: For the first time ever, full-time drivers could get cash offers to leave their jobs voluntarily. Company statements called it a " generous financial package " on top of earned retirement benefits like pensions. But details stayed fuzzy — UPS hadn't even told drivers directly yet when the Teamsters went p...

Sarepta Stock Plunges 40% as FDA Moves to Halt Gene Therapy Shipments

Key Takeaways Sarepta Therapeutics stock plunged ~40% following a second patient death linked to its gene therapy Elevidys . FDA may pull Elevidys off the market as safety concerns mount; shipments halted for non-ambulatory patients . Therapy initially approved controversially in 2023 for ages 4-5, later expanded amid efficacy debates . Year-to-date stock loss exceeds 87%, erasing billions in market value . Duchenne muscular dystrophy patients face renewed uncertainty as treatment risks outweigh benefits for some . The Bloodbath on Nasdaq Sarepta Therapeutics stock cratered 40% in premarket trading June 16, 2025. It opened at $13.60—a far cry from its 52-week high of $150.48 . The collapse wasn't a surprise to those watching the ticker. Shares had been dying a slow death all year. By July, the year-to-date loss hit 87.5% . Shareholders stared at ruins. Trading volume exploded to 60 million shares. Average volume is 5.9 million . The market cap vaporized—$1.336 billion intraday. D...

Gen Z Stare Decoded: Viral TikTok Trend or Societal Mirror?

Key Takeaways The Gen Z stare manifests in two primary forms : a vacant expression from service workers during perceived unreasonable customer interactions ( customer service stare ) and from Gen Z customers instead of verbal responses ( customer stare ) . Pandemic isolation critically impacted social skill development : Reduced face-to-face interaction during formative years limited practice with conversational norms and non-verbal cues for many Gen Zers . It’s often misinterpreted as rudeness or disinterest : Older generations may perceive the stare as disrespectful, while Gen Z frequently views it as a legitimate response to inauthentic or inefficient interactions . Underlying factors include heightened anxiety and authenticity values : Gen Z prioritizes genuine communication and may reject performative politeness, while also experiencing higher rates of social anxiety . Workplaces are adapting training programs : Organizations recognize gaps in soft skills like interpersonal commun...

Finance Foggle

Search This Blog