Negative: McDonald's boycott over DEI program changes leads to 3.6% decrease in U.S. sales.

From Yahoo Finance: 2025-07-03 08:15:00

President Donald Trump’s attack on diversity, equity, and inclusion initiatives led to numerous companies rolling back or eliminating their DEI programs. Consumer sentiment remains balanced, with economic blackouts imposed on firms by upset Americans. McDonald’s, among others, faced backlash for pausing DEI initiatives, leading to a boycott.

McDonald’s announced it was retiring its aspirational representation goals and making changes to embed inclusion practices in its everyday operations. This move, along with other changes to its DEI programs, drew criticism from The People’s Union, leading to a boycott of the fast-food chain.

The boycott, fueled by anger over perceived price gouging, tax loopholes, exploitation of workers, corporate greed, and political corruption, couldn’t come at a worse time for McDonald’s. The company saw a 3.6% decrease in U.S. sales in the first quarter of 2025, the worst since the second quarter of 2020.

McDonald’s isn’t the only corporation facing economic blackouts. Amazon, Target, and Walmart have also faced similar backlashes. While some companies saw an increase in sales during boycotts, others, like Target, experienced a significant decrease in net sales due to rolling back DEI initiatives.

It remains to be seen how the boycott of McDonald’s will impact its sales in the future. With recent quarters showing lagging sales, investors may need to prepare for further challenges. The impact of economic blackouts on companies varies, with some seeing an increase in sales and others facing significant sales decreases.

Read more: The McDonald’s Boycott Every Investor Needs to Know About