McDonald's encounters financial pushback following the withdrawal of Diversity, Equity, and Inclusion (DEI) initiatives.

McDonald's encounters financial pushback following the withdrawal of Diversity, Equity, and Inclusion (DEI) initiatives.

The burger giant, McDonald's, is bracing for a potential loss of customers due to a boycott sparked by the company's decision to curtail its diversity, equity, and inclusion (DEI) policies.

Leading the charge is The People's Union USA, who have orchestrated the "McDonald's Blackout" commencing on June 24, following their "Economic Blackout" in February. Founded by Chicago-based musician and meditation teacher, John Schwarz, The People's Union employs economic resistance tactics, as outlined on their website.

"DEI initiatives should never be abandoned; they're vital for our society. Every American deserves an equal opportunity to succeed, regardless of race, background, or beliefs. Period," the organization passionately declares on their website.

McDonald's stands accused of reneging on its DEI commitments. (Mario Tama/Getty Images / Getty Images)

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In January, McDonald's declared it would be scaling back certain DEI policies. Among these changes are abandoning "aspirational representational goals" for hiring and promoting specific demographics, discontinuing participation in external workplace surveys, terminating the "Supply Chain's Mutual Commitment to DEI pledge," and renaming its Diversity Team to the "Global Inclusion Team."

The People's Union announced their intentions to hit McDonald's wallets, stating, "This week, we're taking a stand. No McDonald's. No compromise." On Instagram, they underlined their demands for an end to predatory pricing, genuine equality, and corporate accountability. Elsewhere on the platform, The People's Union criticized McDonald's for its "false DEI promises."

McDonald's has responded to the criticism, stating, "We welcome open dialogue with the communities we serve, but we're disappointed by the 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."

McDonald's maintains, "As a brand reaching millions daily, we open our doors to everyone, and our commitment to equity remains unwavering. We stand by our local franchisees, offer meaningful job opportunities for over 800,000 employees, spend millions with local suppliers, and support local communities by generating substantial tax revenues annually."

President Trump initiated executive orders targeting "illegal DEI" following his return to office. (Allison Robbert-Pool/Getty Images / Getty Images)

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Corporations in America, from Google to Facebook to Walmart, have either ended or significantly scaled back their DEI initiatives following Trump's re-election. In response, Trump signed numerous executive orders aimed at combating "illegal DEI" and barred federal agencies from contracting with companies practicing DEI.

Recently, a McDonald's executive suggested that the company's DEI changes were primarily cosmetic, with no significant impact on the core programs. McDonald's Chief Field People Officer Jordann Nunn confirmed, "We've just changed some of the language around it, but at the core, none of our programming has changed... we have no plans to make such changes."

McDonald's isn't the first corporation to confront an economic boycott due to its DEI policies. Target endured a 40-day boycott spearheaded by Rev. Jamal Bryant, who encouraged consumers to abstain from shopping at the retail chain during Lent in April, after the company announced it would retreat from its own DEI programs.

Target has suffered dwindling sales, which the company attributes partly to the backlash against their DEI withdrawal and uncertain tariffs. (Google Maps / Google Maps)

"We're not pleased with our current performance and are aware that we can advance faster on our growth plan," Target CEO Brian Cornell stated in May.

Amid reduced spending on fast food, McDonald's reported a 3.6% decrease in U.S. sales during the first quarter of 2023 compared to the same period in the previous year. The company's global sales also saw a 1% decline.

McDonald's CEO Chris Kempczinski revealed that sales among lower-income Americans declined by "double digits," while sales among middle-income American consumers fell nearly as much at the May earnings call.

The People's Union and McDonald's declined to comment on Fox News Digital's request for comment.

1. The boycott against McDonald's, initiated by The People's Union USA, is centered around the company's decision to scale back its diversity, equity, and inclusion (DEI) policies.
2. The financial implications of the "McDonald's Blackout" are significant, as The People's Union aims to impact McDonald's revenues through economic resistance tactics.
3. The ongoing controversy surrounding McDonald's DEI shift has sparked discussions in various sectors, including finance, politics, general news, and markets, as other corporations have also faced backlash for their DEI decisions.

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