Are McDonald's, Starbucks Boycotts Working?

Corporate America is grappling with how to navigate its way around how to address the conflict in the Middle East between Israel and Hamas.

Calls for boycotts have emerged as one way for consumers to express their disagreements over their stances. Companies like Target, Disney and Bud Light producer Anheuser-Busch InBev have come under attack for their decisions that raised the ire of some customers which have ended up hurting their businesses after the consumer backlash.

Coffee giant Starbucks and fast food giant McDonald's are two recent examples of companies that have faced boycotts over the way they responded to the issue.

It has been more than a month since Hamas perpetrated an attack in Israel that led to the deaths of 1,200 Israelis, according to the Associated Press. Israel's military response to the attack in Gaza has led to the deaths of more than 11,400 Palestinians, according to the AP.

In recent weeks, Starbucks and McDonald's have faced criticism over the issue.

The fast food giant McDonald's has faced boycott calls after its franchise in Israel said in social media posts that it would donate meals to the Israel Defense Forces. Some took to social media to argue that "supporting companies that are involved in conflicts is wrong, especially when it comes to the loss of innocent lives."

McDonald told Newsweek in that it was "dismayed" by what it described as inaccurate reports of its position.

"McDonald's Corporation is not funding or supporting any governments involved in this conflict, and any actions from our local Developmental Licensee business partners were made independently without McDonald's consent or approval," the company said in a statement on Monday. "Our hearts are with all of the communities and families impacted by this crisis. We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone.

They added: "We are doing everything we can to ensure the safety of our people in the region while supporting the communities where we operate."

Meanwhile, Starbucks also has faced boycott calls. After a union of its employees Starbucks Workers United posted a social media post—that was later deleted— perceived as being pro-Palestinian, the company said in a statement that "people were mistakenly tying these remarks to us, because Workers United, its affiliates and members continue to use our name, logo and intellectual property."

The two sides are now engaged in a legal dispute over the issue, the Associated Press has reported.

In response to request for comment, a Starbucks spokesperson directed Newsweek to its statement.

Newsweek reached out to Starbucks Workers United via email for comment on Friday afternoon.

It's unclear yet whether the boycott calls against Starbucks and McDonald's have hurt the company. Starbucks' share price is up nearly 13 percent over the last month, according to Google Finance data. McDonald's stock, meanwhile, is up nearly 8 percent over the last month, Google Finance data showed.

During times of contentious debates, it was important that companies exhibit empathy for all that are impacted by the issue, some analysts say.

"The critical thing is that they acknowledge the existence of the experience of the other side," Angela Berg, founder of workplace consultancy firm Perelaks, told the AP.

Update 11/20/23 11:30 a.m. ET: This article was updated to add a comment from McDonald's Corporation.

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