Turmoil in the occupied Palestinian territories and the boycotts of companies supporting Israel in any number of ways are nothing new but have come into increased focus and have attracted widespread support in the months since Hamas’ October 7, 2023, terrorist attack.
While public opinion was initially overwhelmingly in support of Israel, the reporting of journalists within Gaza, such as Motaz Azaiza, the work of Israeli newspapers, such as the +972 Magazine, and of journalists, authors, and activists, such as Gideon Levy and Miko Peled, as well as some of the more controversial claims of Israeli government officials, turned the tide somewhat.
This emergence of strong support for Palestine in multiple places around the world led to a new wave of so-called “organic boycotts” targeting various companies that have come out in support of the IDF with words and actions since October 7.
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The Boycott, Divestment, and Sanctions (BDS), a non-violent and Palestinian-led movement, defines these as “grassroots” boycotts that have not been instigated but are supported by the activist organization.
Multiple major firms – including multiple American fast-food giants – found themselves as targets of the boycotts. In recent weeks, the pressure has been having an increasingly severe effect on targeted companies – particularly in the Middle East.
Given the widespread stock market effects of previous boycotts, such as the one aimed against Bud Light, Finbold decided to see how the stocks of companies targeted due to the Gaza war are reacting.
McDonald’s Corp (NYSE: MCD)
The first company that comes to mind when somebody says “fast food,” and probably the first company that comes to mind when somebody mentions the current boycotts, is McDonald’s (NYSE: MCD).
The American fast food giant found itself in activists’ crosshairs early in the war as its franchise in Israel pledged to supply the IDF with free meals for however long the current conflict lasted.
More recently, there have been calls to broaden and intensify the boycott as the firm’s branch in Malaysia went on a legal counteroffensive against pro-Palestine activists in the country with claims of defamation.
Despite this pressure, McDonald’s stock has not shown any signs of major dilapidation as, while the company is in the red in various relevant timeframes, it is not significantly down since October 2023.
For example, the company has risen notably from a low of $246 it reached in mid-October, and its share price, at press time, stands at $292.26
In the last 30 days, the company’s stock has, however, been on a slight decline of 1.43%, and the same is true in the last week – 2.88% – the last trading day – 1.67% – and Monday’s pre-market – 0.19%.
Starbucks Corp (NASDAQ: SBUX)
Starbucks (NASDAQ: SBUX) is another U.S. chain that found itself a target of pro-Palestine activists. However, the reasons behind the boycott are significantly different than the case with McDonald’s.
Indeed. the company’s management itself blames miscommunication for the issues it is facing. Allegedly, a group of unionized workers published a message in support of Palestine without getting the green light, and the firm came out against them and sued them for copyright infringement.
The move was, apparently, interpreted as pro-Israeli, while the company instead claims that it favors neither side and is categorically against violence in the region.
Whichever interpretation might be true, Starbucks stock is, as it seems, the most heavily impacted by the boycotts. The company has been on a steady decline since it reached its 6-month peak of $107 in mid-November and has, by press time, fallen to $92.80.
In total, the company’s shares are down 3.34% in the last 30 days, 0.93% since January 1, and 1.07% in the last week. Starbucks has, however, closed 0.21% in the green on Friday and is up another 0.22% in Monday’s pre-market.
Coca-Cola Co (NYSE: KO)
The king of soft drinks, Coca-Cola (NYSE: KO), is facing a boycott by pro-Palestine activists primarily due to operating a factory in Atarot, an Israeli settlement near Jerusalem in what is considered an illegal settlement by pro-Palestine groups and the United Nations (UN).
The pressure over production plants in Atarot has, in fact, already forced one American company – General Mills – to exit the settlement, according to the UK-based pro-Palestine group, Friends of al-Aqsa (FOA), which also attempted to raise awareness of the boycott of Coke on November 18, 2023.
Despite this, Coca-Cola shares have been doing rather well in the last four months and have generally been experiencing an uptrend.
In the last 30 days, the soft drinks shares are up 0.75%. The company has been on a slight downward trajectory since January 1 and is 0.75% in the red year-to-date. In the last week, KO stock is also down by 0.60% but Friday, the last trading day, saw it close 0.35% in the green at $59.37.
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