McDonald’s is heading to trial over allegations of racial discrimination against Black-owned media companies, marking a significant moment in its ongoing legal battles. U.S. District Judge Fernando Olguin ruled that sufficient evidence exists for a jury to evaluate claims made by Byron Allen’s Entertainment Studios and The Weather Channel.
They allege the fast-food giant sidelined them into lower-tier advertising budgets reserved for Black-targeted media, excluding them from larger, mainstream advertising allocations.
The lawsuit accuses McDonald’s of structuring its advertising into two tiers. The general market tier, managed by the agency OMD Worldwide, purportedly directs its budget primarily toward white-owned media. Meanwhile, a smaller tier, handled by Burrell Communications, focuses on Black audiences. Allen contends his networks were unfairly restricted to the latter category despite offering content that appeals to a broader audience.
Judge Olguin’s ruling pointed to evidence suggesting McDonald’s general advertising agency refused to seriously consider Entertainment Studios or The Weather Channel. Internal emails reportedly show OMD directing the networks to Burrell, despite their broader content. Darren Galatt, chief revenue officer for Entertainment Studios, testified that the networks were consistently relegated to Burrell, even when they sought broader opportunities.
McDonald’s defends its practices, arguing that its decisions are based on objective criteria, including viewership and relevance to its business strategy. The company claims Allen’s networks failed to meet its 60-million-viewer threshold and cites a “no news” policy that precludes partnerships with networks like The Weather Channel. However, Allen counters that his networks meet these benchmarks and offer similar value to competitors such as CNN, MSNBC, and Food Network.
The lawsuit also highlights controversial comments from McDonald’s CEO Chris Kempczinski, who in 2021 sent texts to Chicago Mayor Lori Lightfoot blaming parents for the deaths of Black and Latino children. Allen referenced these remarks as further evidence of systemic bias within the company.
This case follows McDonald’s legal history with racial discrimination claims. In February, a Los Angeles judge dismissed a separate lawsuit from Allen’s group alleging the company failed to fulfill promises to increase ad spending with Black-owned media. In 2021, McDonald’s settled a $33.5 million case with Black franchisee Herb Washington, who accused the company of steering Black owners away from lucrative locations.
The upcoming trial will determine whether McDonald’s actions were motivated by legitimate business concerns or if racial discrimination played a role in its advertising decisions. For now, the court has left the final judgment to a jury, signaling a contentious battle ahead for one of the world’s largest corporations.
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