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By Hugh Cameron
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McDonald's has issued a response to the nationwide boycott that has been targeting its restaurants this week, fueled in part by the company's decision to roll back diversity, equity and inclusion (DEI) initiatives.
"As a brand that serves millions of people every day, McDonald's opens our doors to everyone, and our commitment to inclusion remains steadfast," the company told Newsweek.
Why It Matters
Since Tuesday, the company has been subject to a boycott led by The People's Union USA, a grassroots movement that has accused McDonald's of price gouging, exploiting tax loopholes, "corporate greed" and of reneging on commitments to DEI. The group, which has also orchestrated boycotts of Walmart, Amazon and Target, plans further action against McDonald's unless the company commits to major changes in corporate policy.
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This week's boycott comes as McDonald's battles sliding sales in the American market. In May, amid "economic uncertainty" and "dampened consumer sentiment," the company reported a 3.6 percent drop in same-store sales in the U.S. in the first quarter, the steepest decline since 2020 at the height of the COVID pandemic.
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What To Know
The People's Union USA—a nonpartisan group focused on "economic resistance, corporate accountability, and real justice for the working class"—said earlier this year that McDonald's was being targeted for "tax avoidance and known lobbying against wage increases."
More recently, the group's founder, John Schwarz shared a list of further issues, including the suppression of workers' rights and union efforts, price "gouging," and the company practicing "performative DEI with no meaningful change."
"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 company told Newsweek in response to some of the grievances expressed by organizers of the boycott. "The McDonald's System also generates billions in federal, state and local taxes annually, and we'll continue to pay our fair share."
At the beginning of the year, McDonald's announced that it would be scaling back certain diversity initiatives, retiring "aspirational representation goals" as well as its DEI pledge for suppliers "in favor of a more integrated discussion with suppliers about inclusion as it relates to business performance."
This reconfiguration of its diversity policies has seen The People's Union USA joined by a group of Black former franchisee owners—who are currently suing the company over alleged discriminatory practices. On Monday, this group announced its support for a nationwide boycott until McDonald's "keep their promises, renew their commitment to the Black community, and finally do right by the Black owners and operators like us who deserved—but did not get—a fair shot at success."
Regarding alterations to the company's DEI policies, McDonald's corporate human resources chief, Jordan Nunn, said earlier this year: "We changed some of the language that we've used it around it, but at the core none of our programming has changed."
What People Are Saying
McDonald's Corporation, in response to the ongoing boycotts, told Newsweek: "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."
John Schwarz, founder of The People's Union USA founder John Schwarz, told Newsweek in response:** "If serving millions and generating billions truly told the whole story, we wouldn't be having this conversation."
"The truth is, McDonald's built a global empire off low wage labor, clever accounting, and aggressive lobbying. They report record profits, nearly $9 billion this year, while many of their workers still can't afford basic healthcare or rent. That's not opportunity. That's exploitation dressed up as service. This boycott isn't about fast food. It's about accountability. The People's Union USA stands for the growing number of Americans done tolerating corporate greed, inequality, and empty promises."
What Happens Next?
The boycott is set to run until June 30, after which The People's Union USA has called for an Independence Day boycott, as well as a monthlong boycott of Starbucks, Amazon and Home Depot. This will be followed by an August boycott of McDonald's, Walmart and Lowe's.
Update 6/25/25, 7:32 a.m. ET: This article was updated with comment from John Schwarz.
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