Thursday, April 20, 2023

16218: Extra! Extra Value! Byron Allen Is Anti-McRacist.

Advertising Age reported on the continuing battle between Byron Allen and Mickey D’s, with the latest skirmish involving Allen firing off another advertisement. This one is recruiting activist investor Carl Icahn to join the fight against McRacists—and posting a list of cultural crimes. Coincidentally, the Golden Arches just launched a new campaign starring the Hamburglar, sorta corroborating Allen’s charges that the organization engages in illegal activities.

 

Byron Allen Asks Carl Icahn To Join Fight Against McDonald’s ‘Blatant Racism’

 

In a full-page ad in the Chicago Tribune, Allen seeks the activist investor’s help against the fast-food giant

 

By Ally Marotti

 

Media entrepreneur Byron Allen took out an ad in the Chicago Tribune today soliciting support from activist investor Carl Icahn in his fight against “blatant racism” at McDonald’s.

 

The Chicago-based hamburger chain has been under pressure from both men in recent years via lawsuits and shareholder meetings. Icahn pushed McDonald’s last year to wean off its dependence on meat products, and Allen has called for CEO Chris Kempczinski’s ousting and filed a discrimination lawsuit against the company.

 

In the full-page ad, Allen commended Icahn for his activism and asked him to “join us in taking another important step against McDonald’s, in the fight against their blatant racism against Black America.”

 

The ad, which ran on Page 7 of Section 1, then lists seven examples of how “McDonald’s racist behavior” has caused reactions from stakeholders in the company. It mentions the backlash Kempczinski faced in late 2021 over text messages to Mayor Lori Lightfoot regarding two children shot in Chicago, and several discrimination lawsuits filed against the company. Allen’s lawsuit was filed in 2021, seeking $10 billion in damages. It alleges racial discrimination for not doing business with Black-owned media.

 

Several of the lawsuits mentioned in the ad have been settled or dismissed. McDonald’s has denied allegations of discrimination and touts the diversity initiatives it has rolled out in recent years, such as tying some executives’ pay to diversity goals. McDonald’s has also worked to dismiss the lawsuit from Allen’s company, Entertainment Studios Networks, but it is still working its way through federal court in California.

 

The ad also mentions Kempczinski’s compensation, which was $17.8 million last year. That is an 11.3% decline from the $20 million he made in cash, stock and options awards in 2021.

 

Allen, whose properties include The Weather Channel and Justice Central, has sued other companies in an effort to get big advertisers to spend more on Black-owned media, including his own company. Ad Age reported in September that Allen said he might need to sue dozens of additional companies to get traction on that goal.

 

A representative for Allen did not respond to a request for comment. It is unclear if Icahn saw the ad or responded to it.

 

Last year, Icahn geared up for a proxy battle with McDonald’s in a push to get the company to adopt more humane treatment of pregnant pigs. The push fell flat at the company's shareholder meeting.

 

“While your efforts to protect animal rights are commendable, please join us on the right side of history to end the horrible systemic racism against Black people by McDonald’s,” the ad said.

 

A representative from McDonald’s did not immediately available for comment. Last September, the company took out its own full-page ad in the Tribune—which also ran on Page 7 of Section 1—underscoring its commitment to Chicago. About a week before McDonald’s took out that ad, Kempczinski publicly blasted Chicago and its crime issues.

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