"Boycotts Under Fire: Did Starbucks and McDonald's Stocks Fall Amid Gaza Crisis Calls?"
Social media posts recently claimed certain global companies like Starbucks and McDonald’s saw stock declines due to Arab boycotts over the Gaza crisis. But how accurate are these assertions?
The claims trace back to early October when Hamas launched attacks from Gaza , sparking Israeli retaliation. This spurred Arab calls to boycott pro-Israel nations' products for local alternatives.
But did boycotts actually impact company stocks?
Despite some sporadic drops, main declines cannot be conclusively attributed to effective boycotts. Sliding valuations coincided with overall market downturns for diverse reasons, beyond boycott-targeted firms. Examining share performances of select companies provides insights.
McDonald's Stock Trends
McDonald's shares saw minor single-day drops on October 12th and 23rd but generally rose over $10 since the conflict began.
Prices climbed from $248.2 at market close on October 6th to $260.1 on October 30th.
However, CNN business analysts note boycotts rarely influence stocks in the short-term, taking 6 months to a year before significantly impacting share prices.
McDonald's upcoming December quarterly earnings, detailing sales and revenues, will reveal boycott effectiveness in Arab markets.
Did Boycotts Hit PepsiCo or Coca-Cola Earnings?
PepsiCo and Coca-Cola faced widespread criticism and boycott calls but share prices seemed unaffected.
Coca-Cola stock rose from $53.1 on October 6th to $56.1 by October 30th.
Meanwhile, PepsiCo increased from $160.29 to $162.28 over the same period.
December quarterly results will provide sales volumes indicating any boycott impacts.
Starbucks remains in Arab Boycott Crosshairs
Starbucks boycotts have continued for over three weeks, not just in the Arab world but globally among Palestine supporters.
Earlier this month, Starbucks Workers United Boston posted a solidarity message on X Social saying: “We stand with the Palestinian people and condemn the Israeli Defense Forces for their senseless, brutal and deadly bombardment of innocent Palestinians.”
Starbucks criticized this post, tweeting: “We unequivocally condemn the acts of terrorism and violence. We disagree with the [workers union] statements, which do not align with Starbuck’s mission and values.”
This further fueled Arab outrage and boycott momentum. Meanwhile, pro-Israel voices in the US have called for boycotting Starbucks , triggering slight stock declines.
Starbucks shares saw volatility in recent weeks but generally decreased from $92.8 on October 6th to $92 on October 28th.
Local Brands See Upsurge
Conversely, local brands like Egypt’s Spathis Beverages reported increased distribution nationwide amid heightened demand, benefiting from the boycotts.
In summary, despite isolated drops, major global brands' stocks remained largely stable during boycott calls. Upcoming quarterly results will better demonstrate if revenues took hits. Meanwhile, local alternatives gained from substitution trends. But barely over a month into boycotts, measurable stock impact taking up to a year remains premature.
