McDonald’s and Starbucks Sales Plummet Amidst Boycotts Over Gaza Conflict
Both McDonald’s and Starbucks recently reported declines in sales and profits, attributing part of the downturn to boycotts by supporters of Palestine during the conflict in Gaza. McDonald’s saw its global sales drop for the first time since 2020, with net profits falling by 12%. Similarly, Starbucks announced a decline in sales in North American and international stores, with total international profits dropping by 23%.
While currency fluctuations and market slowdown are cited as contributing factors, both CEOs acknowledged the conflict in Gaza as a challenge for their businesses. The Palestinian-led movement, Boycott, Divestment, Sanctions (BDS), hailed the drop in McDonald’s earnings as a success of their efforts. Meanwhile, the union representing Starbucks workers expressed solidarity with Palestine, leading to a backlash and a subsequent lawsuit from Starbucks.
Boycotts against McDonald’s and Starbucks in Muslim-majority countries intensified following their support for Israel during the conflict. McDonald’s CEO defended the company in a post on LinkedIn, while calls to boycott the chain continued to gain momentum in protest against their actions.
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