McDonald’s (MCD) , the largest fast-food chain in the U.S., has another major problem on its hands as it struggles to repair its low sales.
Over the past year, McDonald’s sales have weakened as consumers across the country cut back on fast-food spending due to high prices.
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During the first quarter of this year, McDonald’s U.S. comparable sales decreased by 3.6% year-over-year, according to its latest earnings report. The dip in sales contributed to the fast-food chain facing a 3% decline in its operating income, which is its profit after paying operating expenses.
Related: McDonald’s announces major store change to win back customers
The startling sales decline comes after McDonald’s recently rolled out bold menu changes and generous deals to attract customers.
During an earnings call in May, McDonald’s CEO Chris Kempczinski said “macroeconomic uncertainty and pressures” such as inflation are “weighing on the consumer,” which impacted sales more than the company expected.
McDonald’s once again faces an issue that could impact its bottom line.
Image source: Thayer/Bloomberg via Getty Images
McDonald’s sees the return of another major threat to sales
To add fuel to the fire, McDonald’s was boycotted last month by The People’s Union USA, a group that has been organizing boycotts of large companies since February.
The McDonald’s boycott lasted between June 24 and June 30. It was organized due to frustrations over the fast-food chain allegedly paying less taxes than its employees.
The group also took issue with McDonald’s dramatic price increases, anti-union tactics, exploitation of global supply chains and environmental loopholes, and its weak support for diversity, equity, and inclusion.
During the month of June, the number of customers that visited McDonald’s stores declined by 2% year-over-year, according to recent data from Placer.ai.
Related: Target struggles to reverse alarming customer trend amid boycotts
Now, The People’s Union USA is once again doubling down on McDonald’s. The group has another boycott of the fast-food chain scheduled to go into effect Aug. 1, and this time, it is set to last the whole month.
The group is also encouraging consumers not to shop at Lowe’s and Walmart for the full month of August and has organized a plethora of boycotts for September.
“Since February, we have been shaking the foundations of the very corporations that fund this corrupt, treasonous and evil administration, companies that exploit the people, companies that laugh in the face of our struggle,” said The People’s Union USA founder John Schwarz in a recent video on Instagram.
“We have shown them. We have shown them our strength, and they have felt it. But my friends, we are far from done. July, August and September, we are hitting them harder than ever. These are major companies with massive impact.”
The group encourages consumers to shop from local businesses, direct manufacturers, and independent online retailers during these boycotts.
McDonald’s is one of many companies facing boycotts
The move from The People’s Union USA comes after it organized a boycott of Amazon, Starbucks, and Home Depot for the full month of July.
The group took issue with how Amazon treats its workers on Amazon Prime Day and Amazon founder Jeff Bezos’ alleged minimal tax payments.
Starbucks was boycotted due to its recent conflicts with unionized workers, and Home Depot was targeted because it quietly removed its DEI page from its website in March.
According to The People’s Union USA’s website, it aims to “expose corruption and exploitation” and “hold corporations accountable” through these boycotts.
“We’re building a people-powered force that’s not just pushing back, but preparing to take power back from the corporations, the billionaire class, and the political parasites that have been feeding off our work, our wages, and our rights for far too long,” said The People’s Union USA on its website.
More consumers are protesting with their wallets
More consumers nationwide are choosing to boycott companies amid elevated political tensions.
According to a recent survey from LendingTree, 31% of Americans have boycotted a business for various reasons, such as the company condoning discrimination, its political donations, affiliations, or religious messaging or practices.
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Also, 45% of Americans said they at least sometimes research a company’s values or beliefs before purchasing.
“There’s no doubt that lots of Americans are aware of the political leanings of many of the businesses they frequent, but the fact that 45% of consumers look into a company’s politics before buying from them is pretty shocking,” said LendingTree Chief Consumer Finance Analyst Matt Schulz in the survey.
He also said that companies should not “downplay” the impact politics could have on their business.
“Any company that attempts to downplay the importance of politics in their customers’ shopping choices does so at its own peril,” said Schulz. “Your potential customers are listening closely to what your business says, whether you like it or not.”
Related: Home Depot, Amazon, Starbucks suffer major boycott from customers