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McDonald’s To Close Hundreds Of Restaurants Worldwide

Franchise-McD

Looks like all the poor sales numbers are finally doing some damage to McDonald’s. NRN reports that due to a disappointing Q1, McDonald’s will be closing down 350 of its most underperforming restaurants.

Targeted for closures are 220 restaurants in the United States and 130 in Japan. Same-store sales have been falling around the world ranging from 0.6 percent to 8.3 percent. McDonald’s Corp., which has yielded a net income of $1.2 billion in the previous year, fell to $811.5 million. This is roughly a 26 percent drop.

McDonald’s CEO, Steve Easterbrook, says that the company is still evolving and that it’s still trying hard to meet consumer needs. According to a statement by Easterbrook, McDonald’s Corp. is currently working on a plan to improve its performance. The CEO says plans on sharing details will be announced publicly May 4.

While the stores closing are only a small percentage of McDonald’s massive global span, it could very much be the beginning of a growing trend of closures. Unless Easterbrook hatches a great recovery plan.

 

By Peter Pham

Pete's favorite foods include pizza, tacos and pretty much any kind of breakfast. He'll usually snap a photo or two while his food cools down.

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