iStock.com/winhorse
McDonald’s raised eyebrows within the investment community last week after noting that it’s seeing growing negative sentiment among some international consumers toward America and American brands.
The comments come as investors and Wall Street analysts have been closely monitoring consumer-oriented companies with a significant presence in international markets for any signs of anti-American sentiment related to President Donald Trump’s policies, particularly over tariffs.
International sales produce nearly 60% of McDonald’s revenues.
Chris Kempczinski, McDonald’s CEO, said on the fast-food chain’s first-quarter analyst call that an internal survey revealed that consumers in various markets are “going to be cutting back their purchase of American brands, and we’ve seen an uptick in anti-American sentiment.” He added: “Call it eight- to a 10-point increase in anti-American sentiment.”
He said the American backlash was “most pronounced” in Northern Europe and Canada, with no noticeable change in Latin America and Asia.
Nonetheless, the growing anti-American attitude has not spilled over to the McDonald’s brand, Kempczinski said, noting its international restaurants are largely operated by local franchisees who “live and work and support the communities they do business in.”
Other issues playing roles in grassroots movements calling for boycotts of American goods in Canada and across Europe include Trump’s threats to assert control over Canada, Greenland, and the Panama Canal, as well as U.S. actions around the wars in Ukraine and Gaza.
Coca-Cola attributed some weakness in Mexico in the first quarter to U.S. immigration and trade policies, with CEO James Quincey on an analyst call stressing the importance of calling out that beverages are manufactured locally, in addition to their “affordability.”
Morning Consult Intelligence data showed America’s reputation has worsened in 38 out of 42 nations polled around the world between Jan. 1 and March 17, declining on average by 20 points. Particularly severe drops were seen among some of America’s longest-standing allies, such as Canada (44 percentage points), Mexico (32 percentage points), and South Korea (38 percentage points), as well as European nations such as Sweden (47 percentage points), France (33 percentage points), Norway (36 percentage points), and the UK (31 percentage points).
An Ipsos survey of 22,715 adults in international regions taken between March 21 and April 4 similarly found that those saying the U.S. will have a positive influence on world affairs has fallen in 26 out of 29 countries, with notable declines in Canada and Europe.
The surveys don’t fully reflect the reaction to Trump’s "Liberation Day" tariff plan announced on April 2 that eventually caused China to face U.S. import duties as high as 145%.
Forrester analyst Sucharita Kodali told Yahoo! Finance that the biggest risk for U.S. brands may be backlash from Chinese consumers. She said, “I don't know the future of American companies in China.”
Goldman Sachs’ analysts in an April 15 note predicted that the combination of a pullback in foreign travel and consumer boycotts tied to rising anti-U.S. sentiment could cost the U.S. economy as much as $90 billion this year.