Fast-food giant McDonald’s (MCD) is scaling back its diversity, equity, and inclusion (DEI) initiatives for employees and suppliers. This move aligns with a broader trend seen among major firms like Walmart (WMT), Ford Motor (F), and Lowe’s (LOW), which have curtailed DEI efforts amid rising pressure from conservative activists. These activists contend that DEI initiatives unfairly benefit specific groups.
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Importantly, activist Robby Starbuck, who has been vocal in his criticism of corporate DEI programs, took credit for influencing McDonald’s decision. Starbuck, who has a large following on X (formerly Twitter), has been using social media to challenge companies he believes are overly focused on DEI initiatives.
Key Changes MCD Plans to Implement
In an open letter to its stakeholders, the company said it would remove specific goals for achieving diversity at senior leadership levels and discontinue a program that led suppliers to increase diversity within their leadership. However, MCD will continue to track and report diversity data within its workforce and discuss inclusion with its suppliers during business reviews.
The company also renamed its diversity team as the “Global Inclusion Team” and ended participation in external surveys, such as the Human Rights Campaign Corporate Equality Index.
Is McDonald’s Stock a Buy or Sell?
Turning to Wall Street, MCD has a Moderate Buy consensus rating based on five Buys and one Hold assigned in the last three months. At $321.14, the average McDonald’s price target implies 9.91% upside potential. Shares of the company have gained 19.29% over the past six months.
