McDonald’s faces consumer boycott over price hikes, health concerns

*McDonald’s faces a 3.6 percent drop in its sales in the United States in the First Quarter of 2025 amid backlash over price hikes and health concerns, says report

Isola Moses | ConsumerConnect

McDonald’s, a fast-food giant, is facing tumbling sales and consumer boycott as the backlash of the recent Consumer Satisfaction and Business Performance ratings.

ConsumerConnect gathered that the foremost fast-food chain currently faces a 3.6 percent drop in its sales in the United States (US) the First Quarter (Q1) 2025 amid backlash over price hikes and health concerns.

These include a weeklong boycott to address labour and environmental concerns in the American country.

McDonald’s is the latest company targeted by The People’s Union USA, citing tax practices, labour issues, and environmental impact, agency report said.

Over half of Americans say they avoid brands whose stances clash with their values, fuelling the trend of consumer-driven protests, report noted.

McDonald’s is not feeling warm and crisp lately as it battles slumping sales, blows to its reputation and a boycott by disgruntled consumers.

After enduring criticism for aggressively raising menu prices during inflation, McDonald’s also faces fallout from a temporary E. coli outbreak at several restaurant locations October 2024.

Despite firm’s efforts at enticing customers back with menu changes and promotions, the company’s financial results continue to suffer, according to report.

For instance, in its Q1 2025 earnings report, McDonald’s revealed a 3.6 percent decline in the US comparable sales year over year.

Operating income also slipped by 3 percent, while foot traffic fell by 2.6 percent during the quarter, according to data from Placer.ai.

Key factors dampening McDonald’s sales: CEO

Commenting on the development, McDonald’s CEO Chris Kempczinski told investors on a May 1 earnings call:

“We entered 2025 knowing that it would be a challenging time for the QSR industry due to macroeconomic uncertainty and pressures weighing on the consumer.”

Kempczinski listed inflation, geopolitical tensions, and shaken consumer confidence as key factors dampening sales beyond expectations.

In respect of People’s Union boycott, it is noted that as McDonald’s grapples with those economic headwinds, it equally faces a major boycott organised by The People’s Union USA, a group that has launched similar campaigns against Amazon, Walmart, and Target this year.

On alleged price gouging

In a recent Instagram post, the group’s founder, John Schwarz, laid out five accusations against McDonald’s:

The fast-food giant, he claims, pays less in taxes than its own employees thanks to offshore loopholes;

engages in “price gouging” despite record profits;

has a history of anti-union tactics; relies on supply chains linked to deforestation and poor labor conditions; and

promotes diversity, equity, and inclusion publicly while supporting political causes that allegedly undermine those values.

“While McDonald’s runs DEI-focused ads, their political donations and lobbying often support candidates and legislation that undermine equity, labor rights, and marginalised communities,” Schwarz wrote.

Politically charged boycotts

McDonald’s joins a growing list of corporations facing politically charged boycotts, as more consumers wield their wallets in protest.

A recent survey by CLYDE/Ipsos found that 53 percent of Americans are less likely to support companies whose positions clash with their personal views—a sign that brand loyalty in the modern age is increasingly intertwined with social and political sentiment.

As the fast-food giant muddles through the boycott therefore, it faces a critical challenge: repairing trust with consumers already wary of rising prices and corporate practices, in an economic environment where customers are quicker than ever to walk away.

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