McDonald's , Wendy's, Taco Bell, and more chains were forced to deny viral claims on social media that they are donating to PresidentTrump 's reelection.- No major fast-food chains or CEOs of prominent chains are donating to Trump in the 2020 election, according to a review of FEC data by Business Insider.
- PACs run by chains and PACs run by franchisees are donating hundreds of thousands of dollars to candidates for Congress, with chains typically donating more to Republicans than Democrats.
- The viral rumors started after Business Insider reported the CEO of an independent franchisee who owns Wendy's, Taco Bell, and Pizza Hut locations donated more than $440,000 to Trump's campaign.
- A handful of wealthy industry insiders are also Trump donors, including Nelsen Peltz, who sits on Wendy's board; Stephen Ross, whose company has invested in smaller brands like &Pizza and Momofuku; and Tilman Fertitta, the CEO of Landry's, which owns Bubba Gump, Del Frisco's, and Joe's Crab Shack.
Claims that fast-food giants such as Wendy's, Taco Bell, and McDonald's, as well as other chains such as Olive Garden and Waffle House, are funding President Trump's reelection campaign exploded on social media this week.
A number of chains debunked the claims, with McDonald's, Wendy's, and Taco Bell all saying that they did not donate to any presidential candidate.
A review of FEC filings by Business Insider reveals that fast-food CEOs are not backing Trump's reelection. Nor are fast-food companies donating to support the president.
However, wealthy investors, political action committees (PACs) backed by companies and franchisees, and industry groups donate hundreds of thousands of dollars to candidates every year. While these donations go to political groups across the board, support tends to skew towards Republican candidates.
Here's a breakdown of the more complicated truth about the fast-food industry's political donations.
No major fast-food chain has directly donated to Trump's reelection
Claims that companies are bankrolling Trump's reelection don't match up with FEC data.
Many viral donation claims pull figures from Open Secrets, which show fast-food chains donating hundreds of thousands of dollars to political campaigns, disproportionately to Republicans.
However, these figures pull together all donations associated with an employer, from restaurant workers to PACs. According to Open Secret's data, the 2020 presidential candidate who received the most in donations from the restaurant industry is Sen. Bernie Sanders, who saw significant support from hourly workers at companies like Walmart.
Fast-food giants, however, did not donate to Sanders' campaign. Nor have any major fast-food companies donated to any other 2020 presidential campaigns.
That is not to say that fast-food companies aren't donating to any candidates in 2020. Many companies, including McDonald's, Wendy's, and Taco Bell, KFC, and Pizza Hut's parent company Yum Brands have donated to Congressional candidates and political groups via PACs.
In these cases, donations from employees and franchisees are pooled to support a range of candidates. PACs donate to a range of candidates and organizations, but the total Republican donations — who are often seen as more likely to support corporate interests — typically outweigh donations to Democrats.
The National Restaurant Association, a lobbying group meant to protect restaurants' interests, similarly donates to both Democratic and Republican candidates, but gives more to Republicans. The industry lobbying group did not donate to any 2020 presidential candidates. Roughly three-fourths of donations went to Republican candidates for Congress versus one fourth to Democrats.
So, are company's funding President Trump's reelection? No, but they are donating to candidates for Congress, and typically donate more to Republicans.
CEOs aren't donating to Trump
But what about executives and people who stand to gain from fast-food chains' popularity? If you're a supporter of Trump or Vice President Joe Biden, are there chains you might avoid because their CEO is bankrolling a certain candidate?
When Business Insider reviewed top executives' political donations last year, it found that few donated to Trump or any other presidential candidate.
The only top executives at a chain restaurant to make substantial donations to President Trump's campaign are Mark Taylor,
During the 2016 election, Papa John's CEO John Schnatter and Andy Puzder, the CEO of Carl's Jr. and Hardee's parent company CKE Restaurant, donated to Trump. Neither are currently employed by the chains.
Puzder faced controversy after being nominated to become Trump's labor secretary. Schnatter was ousted at the pizza chain after using racially offensive language on a company call.
A handful of restaurant investors are massive Trump donors
While no current CEOs of major fast-food chains are donating to presidential candidates, some investors and chair members are supporting Trump.
Billionaire Nelsen Peltz is the CEO and founding partner of investment management firm Trian, as well as a long-time donor to Republican politicians. Trian is an investor in Wendy's and Peltz sits on fast-food chain's board.
Peltz has donated at least $83,100 to Trump since 2016. In February, Peltz hosted a fundraiser for Trump with reported a $580,600 price of entry.
Stephen Ross is the chairman and founder of RSE Ventures, which has invested in a number of smaller restaurant companies including Momofuku, Milk Bar, and &Pizza. Ross has donated to a number of Republican PACs, and reportedly held a $100,000 a head fundraiser for Trump last year.
Other, lesser-known restaurant companies also have investors or executives who have made significant donations to Trump. These include:
- Tilman Fertitta, the billionaire CEO of Landry's — which owns restaurant brands such as Bubba Gump, Del Frisco's, and Joe's Crab Shack — is a long-time friend of the president and donated more than $70,000 to Trump since 2019.
- Craig Estey, the owner and founder of Nevada Restaurant Services which runs the Dotty's tavern chain, has donated more than $600,000 to Trump since 2019.
- Ray Washburne, the CEO of M Crowd Restaurant and cofounder of the Texas chain Mi Cocina, has donated thousands of dollars to Trump since 2016 and serves as the vice-chair for the Trump Victory Committee.
There are also Trump megadonors in the food and beverage business outside of restaurants, such as Ron Cameron, the owner and chairman of poultry company Mountaire and Molson Coors Brewing Company chairman Pete Coors.
A franchisee's donations set off the most recent firestorm
The reason for the most recent round of rumors about chains supporting Trump was rooted in the actions of James Bodenstedt — the CEO of Muy Cos., a franchisee of Wendy's, Taco Bell, and Pizza Hut — who donated more than $440,000 to Trump's campaign.
Business Insider reported on the donations in May, when Bodenstedt sat on a restaurant roundtable with Trump about the restaurant industry's recovery.
It is difficult to track franchisees' donations to political groups, simply because there are so many franchisees in the US. Most major chains rely on independent franchisees to run the bulk of their locations as independent businesses. As a result, franchisees can range from an individual running a handful of Subway locations to an organization like Muy Cos. that runs hundreds of restaurants.
Additionally, it can be hard to keep track of what locations are run by which franchisee if someone does decide to boycott based on political donations. Muy Cos. removed its list of locations from its website following the backlash. (The company has not returned Business Insider's requests for comment.)
Franchisees also have their own PACs. These include PACs made up of donations from franchisees of Burger King and KFC. Taco Bell franchisees' donate to TACO PAC, while IHOP franchisees donate to the Pancake PAC.
In the 2020 cycle, none of these franchisee PACs reviewed by Business Insider have donated to President Trump's reelection. Instead, they have made donations to a number of 2020 candidates, typically donating more to Republicans.
Ultimately, fast-food companies and executives do not make up a significant amount of direct donations to President Trump in the 2020 election. Nor are they backing Vice President Biden.
Fast-food chains are involved in the 2020 election, but primarily through donations to candidates running for Congress. The biggest individual Trump donors in the restaurant industry aren't affiliated with well-known fast-food chains, with the possible exception of Wendy's board member Nelsen Peltz.
So, if concerns that your fast-food order was funding a presidential campaign were keeping you away from McDonald's, Taco Bell, or KFC, you can rest easy and return to your favorite chain.
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