What to know about McDonald's "economic blackout" protests

Here's what to know:

What is the McDonald's protest?

State of play: The People's Union USA, which has led several economic blackout boycotts this year, is currently targeting McDonald's between June 24 and June 30.

• On Instagram, the group says it's boycotting McDonald's for alleged "price gouging," the use of supposed tax loopholes, purportedly suppressing workers' rights and union efforts, and making "false DEI promises."
• "We're done funding their greed," John Schwarz, the group's founder, said on Instagram this week.
• Schwarz did not respond to Axios' request for comment.

In a statement to Axios, McDonald's said, "As a brand that serves millions of people every day, McDonald's opens our doors to everyone, and our commitment to inclusion remains steadfast."

• "The McDonald's System also generates billions in federal, state and local taxes annually, and we'll continue to pay our fair share," the company added.
• "We welcome honest dialogue with the communities we serve, but we're disappointed to see these misleading claims that distort our values and misrepresent our actions. Our focus remains on serving our customers and communities. We're here and ready to serve."

Vocally anti-Trump, the People's Union USA is targeting corporations it says bend to recent Trump policies, such as walking back DEI initiatives.

• In a January letter to franchise owners, suppliers and current employees, McDonald's proclaimed its commitment to diversity and inclusion but said it would modify some practices after conducting a "civil rights audit."

Have the protests had an impact?

• Earlier this year, the People's Union USA spearheaded boycotts against Walmart, Target, and Amazon.
• There was little evidence to suggest these protests moved the needle — despite the group's March boycott against Amazon, the company posted better-than-expected earnings results that quarter.

Have any recent boycotts worked?

The other side: A 40-day boycott against Target, led by megachurch pastor Rev. Jamal Bryant, was more successful.

• Target was a major subject of backlash for its rollback of DEI initiatives in the wake of Trump's re-election.
• Sales declined last quarter, and the company admitted that backlash to its reversal on DEI was at least partially responsible.
• "We faced several additional headwinds this quarter, including five consecutive months of declining consumer confidence, uncertainty regarding the impact of potential tariffs, and the reaction to the updates we shared on (DEI) in January," Target CEO Brian Cornell said on a call with analysts.

And boycotting seems to work against diversity, too.

• A 2023 boycott was initiated by conservative groups over a Bud Light promotion featuring transgender spokeswoman Dylan Mulvaney.
• Sales tanked in the year after.

What they're saying: Brayden King, a professor of management and organizations at Northwestern University, said in a 2017 note that "the typical boycott doesn't have much impact on sales revenue."

• "The no. 1 predictor of what makes a boycott effective is how much media attention it creates, not how many people sign onto a petition or how many consumers it mobilizes," he said.

Editor's note: This story has been updated with a statement from McDonald's.