McDonald's Reaches Settlement Over Allegations of Racially Discriminatory Ad Spending

By Kelly Cloonan

McDonald's said it has reached a settlement with two companies owned by media mogul Byron Allen that accused the fast-food giant of discriminating against Black-owned media companies.

The fast-food restaurant company said Friday it would continue to purchase advertising from Entertainment Studios Network in a manner that aligns with its advertising strategy, and the network would dismiss its lawsuit against McDonald's.

Under the confidential terms of the agreement, McDonald's isn't admitting any wrongdoing, and the ads sold would be priced at market value, the company said.

Entertainment Studios Network and The Weather Group had filed a complaint against McDonald's in 2021, seeking $10 billion in damages as they alleged the restaurant chain engaged in a "discriminatory contracting process and refusals to advertise on Plaintiffs' networks on the basis of race."

Entertainment Studios Network and The Weather Group said they are pleased with the resolution of the lawsuit.

"During the course of this litigation, many of our preconceptions have been clarified, and we acknowledge McDonald's commitment to investing in Black-owned media properties and increasing access to opportunity," the companies said.

McDonald's said it is pleased Allen has come to appreciate the company's commitment to inclusion, and that the commercial arrangement is consistent with its other supplier relationships.

Write to Kelly Cloonan at [e-mail]

(END) Dow Jones Newswires

06-13-25 1414ET