Starbucks and McDonald's both face a major problem - and it's not just plunging sales or high prices

McDonald's and Starbucks stock nan accolade of being nan biggest - and, successful nan past astatine least, nan champion - astatine what they do.

But they now person 3 different unwanted things successful common.

They person some been lambasted for putting up prices successful nan past 2 years. And that has led some to suffer customers - arsenic they admitted this week successful their latest earnings.

On Monday, McDonald's reported its income had fallen for nan first clip successful years. The adjacent time Starbucks reported its 2nd 4th successful a statement of dismal sales. 

But nan 3rd point is that they person some besides been deed by boycotts complete their perceived support of Israel.

McDonald's CEO Chris Kempczinski summed up nan problem erstwhile he was talking to CNBC connected Wednesday. 

He said nan concatenation had been deed by organized boycotts  pursuing nan outbreak of nan Israel-Hamas warfare past October. 

'We're seeing broadly occidental brands person been a target for immoderate of what has happened aft nan outbreak of nan warfare successful nan Middle East,' Kempczinski told nan broadcaster connected Wednesday.  

'It's a unspeakable business [in position of] what's going connected complete location and it is impacting our business successful immoderate markets.'

Kempczinski clarified that nan franchise is 'not taking a broadside connected this.' 

'For america we're astir supporting communities and that's what we're going to proceed to do here,' he added.

The boycott was sparked aft an Israeli franchisee, Omri Padan, offered free meals to Israeli soldiers going into Gaza successful nan days pursuing nan October 7 Hamas panic attacks. 

The boycott is being tally by Boycott, Divestment, and Sanctions (BDS), a nonviolent activity aiming to unit Israel complete its behaviour successful nan war. 

'McDonald's is now really emotion nan BDS heat,' Omar Barghouti, co-founder of nan movement, told Fortune connected Tuesday. 

'Its stock value is quickly declining, and its income are falling globally, chiefly owed to nan worldwide #BoycottMcDonalds run that we launched precocious past year' Barghouti added. 

McDonald's banal is down 10 percent since nan commencement of nan year.

Starbucks has besides been deed by a boycott aft it sued nan Workers United national that represents baristas astatine much than 470 US outlets.

The institution claimed a pro-Palestinian societal media station from nan national harmed its reputation. 

Starbuck's CEO Laxman Narasimhan said nan boycott was generated by 'misinformation' astir nan company's position connected nan conflict but has not quantified really damaging nan shunning has been.