McDonald’s (MCD) Faces Consumer Backlash: Boycott Brews Over Wage Disputes & ‘Creative’ Tax Tactics

Fast-food giant McDonald’s finds itself in the crosshairs of consumer activists—again. This time, it’s a one-two punch of wage grievances and alleged tax avoidance schemes that’s firing up critics.

The boiling point

A coalition of consumer groups is mobilizing a boycott, accusing MCD of squeezing workers while allegedly funnelling profits through tax havens. Because nothing says ‘American capitalism’ like offshore loopholes and minimum-wage battles.

The finance angle

Wall Street shrugs—as long as those quarterly dividends keep flowing, who cares about optics? Meanwhile, the company’s PR team is likely scrambling to spin this as ‘efficient capital allocation.’

What’s next?

Will this dent the Golden Arches’ empire? Unlikely. But in an era of viral outrage, even a 1% dip in sales could trigger more activist headaches. Bon appétit, shareholders.

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The People’s Union USA, a grassroots advocacy group, is urging a nationwide boycott against McDonald’s in America from June 24 to 30 as part of a broader campaign that calls for economic resistance, corporate accountability, and justice for the working class.

At the same time, the People’s Union is accusing McDonald’s of “tax avoidance, lobbying against wage increases, and rolling back diversity practices,” according to a social media post about the boycott. Although a seven-day protest is unlikely to hurt the Golden Arches long-term, some analysts on Wall Street are worried it may hurt the company’s second-quarter financial results that are due out on Aug. 4.

Bad Publicity

Some folks on Wall Street also say that there’s a risk that the boycotts last longer than a week if consumers support the action. In such a case, McDonald’s might face a long-term brand crisis. While it remains to be seen if the boycott turns into something bigger, discount retailer Target (TGT) has faced a similar boycott that has been ongoing since February of this year.

The boycott, even if it is only a week, comes at a sensitive time for McDonald’s and its stock. In May, the fast-food giant reported first-quarter revenue of $5.96 billion, down 3.5% from a year earlier, and adjusted earnings of $2.67 per share, down 1% year-over-year.

MCD stock hit a record high of $326 in March of this year but has fallen 10% in the past month. Analysts have been downgrading the company’s shares since its first-quarter print.

Is MCD Stock a Buy?

The stock of McDonald’s has a consensus Moderate Buy rating among 26 Wall Street analysts. That rating is based on 11 Buy, 14 Hold, and one Sell recommendations issued in the last three months. The average MCD price target of $328.89 implies 13.60% upside from current levels.