The Truth About Walmart, McDonald’s, Starbucks and Other US Brands Amid Allegations of Pro-Israel Bias in Gaza Conflict

Amidst heightened tension and global condemnation of the mass killing of innocent Palestinian civilians following the horrific October Hamas attack, there's been much confusion in Muslim communities and on social media about the response of U.S.-based businesses as well their record on funding and investment in Israel.

And the backlash is hitting where it hurts. Over a period of weeks Coffee giant Starbucks share value decreased by nearly 10 per cent after a $12 billion loss in market value. The hashtag #BoycottStarbucks surged in early November, featuring in over 7,000 TikTok videos in America, amassing a staggering 51 million views. While #BoycottMcDonalds has appeared in over 3,000 TikTok videos with 10 million views during the same period. 

This followed viral social media reports that both companies along with the likes of Walmart and Google had made considerable donations to Israel following the attacks. These reports have not all been accurate.

Indeed, there is significant misinformation about multiple Western-based businesses and their support or investment in the State of Israel which pre-dates the recent outbreak of fighting and is connected with the Boycott, Divestment, Sanctions (BDS)  movement. 

Its proponents oppose any funding to Israel, which has for years been accused by the UN and human rights organizations of being an “apartheid state” for the systematic persecution of the Palestinian people. They discourage the buying of Israeli products and urge supporters to defy American companies who enforce anti-BDS clauses in employment contracts. 

The ACLU and other civil rights groups have litigated such contracts as a  violation of the First Amendment.

AMT delves into the positions of some key companies implicated in the boycott chain. Our exclusive investigation explores which businesses have actively committed to providing support and donations to those affected in Gaza and/or Israel and their historical record in funding either cause.

Starbucks Founder’s Links to Israel but Claim No Funding

Boycotting campaigns surged when it emerged that the chain retaliated against Starbucks Workers United, an employee labor organization, who posted a Palestinian solidarity message on Oct. 11 on X (formerly Twitter), which has since been deleted. Pro-Israel customers started a boycott, claiming the message was Pro-Hamas with the likes of Sen. Rick Scott of Florida posting, "If you go to Starbucks, you are supporting killing Jews," and the company began a legal battle with the union.

This led to a huge boycott campaign by student groups and others although the company told AMT it was not picking sides. It referred us to a statement by Sara Kelly, VP and chief partner officer.

It says, “As a leadership team, we want to again express our deepest sympathy for those who have been killed, wounded, displaced and impacted following the heinous acts of terror, escalating violence and hate against the innocent in Israel and Gaza this week. Starbucks unequivocally condemns acts of hate, terrorism and violence.”

Starbucks further sent AMT a recently updated position statement that addresses long-standing claims about the coffee company’s historical business links to the state of Israel. It says, “Neither Starbucks nor the company’s former chairman, president and CEO Howard Schultz provide financial support to the Israeli government and/or the Israeli Army in any way.”

Observers note that Shultz, who has in the past received national awards from Israel, is said to have intervened in the recent controversy. Duvi Honig, the head of the Orthodox Jewish Chamber of Commerce, who had called for a boycott of Starbucks said he only relented after Shultz personally telephoned to reassure him and initiated the lawsuit against the Pro-Palestine union.

With over 1,900 stores in Middle Eastern and North African markets employing more than 19,000 employees, the company pointed out it closed any stores it had in Israel over 20 years ago. 

However it clarifies this was not politically motivated, “We decided to dissolve our partnership in Israel in 2003 due to the ongoing operational challenges that we experienced in that market.”

Wal-Mart/ Sam's Club Match Gaza and Israel Donations

Outrage went viral in pro-justice for Palestinians groups when it was reported on Nov. 1st  that Walmart Foundation pledged $1 million to an Israeli disaster relief and emergency medical service organization. 

And the weekend following Hamas’ surprise attack, Walmart CEO Doug McMillon had also posted on LinkedIn that the foundation donated $1 million to the United States Holocaust Memorial Museum in the name of fighting antisemitism. 

AMT followed up with the retail giant’s donation as Muslim-led social media campaigns demanding a boycott began circulating.

Over a week after we approached its corporate head office on Nov. 13th, its representatives sent AMT a link dated Nov. 24th, which announced that Walmart Foundation was giving a matching $1 million to Direct Relief, a nonprofit organization that provides emergency medical aid to civilians in Gaza. This was to mirror the earlier donation to Magen David Adom, Israel’s emergency services and blood bank. 

“We are continuing to listen and assess where we can make a difference,” Melissa Hill, Senior Director of Global Communications, told AMT. 

McDonald's Denies Corporate Donation to Israel 

International outrage was ignited when an Israel-based franchise announced it would give free food to members of the Israeli military, which caused immediate boycotts from McDonald’s consumers worldwide. 

The world’s biggest fast-food chain was condemned when images and videos showing uniformed Israeli Defense Force troops enjoying McDonald’s branded burgers, fries and milkshakes were posted on social media, standing in stark contrast with food and thirst-ravaged Gazan civilians under siege just across the border.

The company quickly distanced itself from this move and told media it was focused on keeping employees safe. McDonald's has since announced it was making a $1 million donation split evenly between the Red Cross and The World Food Program. 

In a statement to AMT, the headquarters shared their concern over the disinformation and inaccurate reports regarding the company’s position on the conflict in the Middle East. “McDonald’s Corporation is not funding or supporting any governments involved in this conflict, and any actions from our local Developmental Licensee business partners were made independently without McDonald’s consent or approval.”

 They also added, “Our hearts are with all of the communities and families impacted by this crisis. We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone.” 

Amidst the furor surrounding McDonald Israel's meal donations to IDF soldiers, McDonald's in the Kingdom of Saudi Arabia (KSA), where there are over 270 stores, shared it was donating SR2 million ($533,000) to help with relief efforts in Gaza. 

It stated, "As a purely Saudi company, we've proudly embraced our Saudi identity since day one, consistently contributing to our economy, rallying for our national community, and championing social and humanitarian causes close to our hearts." 

Critics say like so many global businesses McDonald's, which has over 9000 stores in Muslim-majority countries in the Asia Pacific Middle East and Africa (APMEA) region, can’t afford to take sides in the Israel/Hamas conflict.

Google Splits Donations Between Gaza/Israeli Victims

Messaging against Google gained momentum when it was widely reported that it donated $1 million to Israeli victims of the terror attack on October 7.

Ten days later,  Google’s CEO, Sundar Pichai, announced $8 million in grants for nonprofits providing relief to both Israeli and Palestinian civilians. His statement addressed the struggles both Jewish and Muslim employees are facing both in the region and globally. 

More than $1 million was raised by Google employees through its company match program and $1 million from Search Ads to nonprofits to connect people in need and provide information to those wanting to help. An equally divided $6 million was split between relief organizations working in Gaza and Israel. 

Despite these substantial efforts at bilateral support, it has failed to sway critics within the BDS movement who point to Google Cloud executives signing a $1.22 billion contract to provide cloud technology to the Israeli government and military. This raises concerns and draws attention to the complexities surrounding Google's involvement in the region.

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