Following the recent election, PepsiCo CEO Indra Nooyi, a staunch supporter of Hillary Clinton, immediately released a statement criticizing Donald Trump. Within days after making her remarks, the stocks of the multinational food and beverage corporation dropped.
A day after Trump was elected president, Nooyi expressed her anger regarding Trump’s alleged attitude towards women, an issue which the Democratic Party tried to use in order to beat him in the polls.
“Forget about the Pepsi brand,” Nooyi said according to Forbes. “If we don’t nip this in the bud it is going to be a lethal force in society.”
Then, in an interview with CNBC, Nooyi raised her concerns regarding the general safety of women, minorities and the members of the LGBT community under Trump’s administration.
Days after she made her statements against Trump’s presidency, stocks of PepsiCo fell. According to recent investment reports, the company’s stock rating has been downgraded from a “buy” to a “hold.” In addition, PepsiCo’s revenues for this year are also not doing well. In fact, its revenue volume has dropped by three percent during the first three quarters of 2016. This marks the eighth consecutive quarter that PepsiCo’s revenue has been dropping.
PepsiCo is not the only company that experienced a drop in stock prices following the election of Trump. GrubHub, the online food-ordering company based in Chicago also went through the same situation after its CEO Matt Maloney asked his employees who are supporters of Trump to resign through an email memo.
After the internal letter was publicized, a boycott movement against GrubHub immediately emerged. As a result, the company’s stock price dropped from $42 to $36.34 in less than a month. Maloney tried to fix the situation by issuing an apology to the public and his employees but this didn’t help in improving the company’s shares.