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2 boycott stocks from 2024 to buy now
MCDMcDonald's(MCD) Finbold·2025-03-15 19:02

Core Viewpoint - Several Wall Street companies have faced consumer backlash over their positions on controversial global issues, leading to boycotts that affected sales and stock prices. However, in 2025, some of these firms are showing signs of recovery, presenting potential investment opportunities [1]. Group 1: Starbucks (NASDAQ: SBUX) - Starbucks experienced a backlash due to its workers' union supporting Palestine amid the Israel-Hamas conflict, resulting in a boycott from pro-Palestinian activists [3][4]. - In 2024, Starbucks' sales declined by 2% in North America and 7% internationally, leading to the closure of Middle Eastern outlets and the loss of over 2,000 jobs [4]. - In 2025, Starbucks' shares have increased by over 7% year-to-date, supported by new product launches and a 3millionpledgeforGazarelief,withthestocktradingat3 million pledge for Gaza relief, with the stock trading at 98.11 [4]. - The company's P/E ratio is 36.51, indicating it is fairly overvalued, but expected earnings growth of 47% could justify this valuation [5][6]. - For the last quarter, Starbucks reported 9.4billioninrevenue,slightlyexceedingexpectations,butnetincomefellto9.4 billion in revenue, slightly exceeding expectations, but net income fell to 780.8 million from 1.02billionayearago,withsamestoresalesdown41.02 billion a year ago, with same-store sales down 4% [6]. Group 2: McDonald's (NYSE: MCD) - McDonald's faced controversy when its Israeli franchisee provided free meals to Israeli soldiers, leading to a boycott from pro-Palestinian advocates, particularly in Muslim-majority regions [8]. - The company missed its first quarterly sales target in four years in 2024, with growth in the Middle East, China, and India at just 0.7%, significantly below the expected 5.5% [9]. - As of the last trading session, McDonald's stock was valued at 299.83, with a year-to-date increase of 3.4% [10]. - The company is addressing challenges by expanding value menus, launching new products, and rebuilding consumer confidence [11]. - McDonald's has 150 million loyalty members and ongoing automation efforts that support long-term growth, alongside a 2.4% dividend yield and a forward P/E ratio of 25.74, indicating strong fundamentals [13].