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Fast Food

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.

 

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News

Fresh & Easy: Set to Close 13 Locations

The recession has hit Fresh & Easy markets across multiple states, resulting in the temporary closing of 13 of its 168 locations. The chain, which operates over three states (Nevada, Arizona and California), will lose stores in particular markets of these three states. For the meantime, the stores will be boarded up and considered for re-opening at a later date. The market’s parent company announced that six locations in the Las Vegas, NV area, six in the Phoenix, AZ area and one in Moreno Valley will get this “boarded up” treatment. Stores currently being built do not have release dates, and their futures haven’t been commented on. California, particularly Orange County has seen a rapid increase of Fresh & Easy markets with many more planned. (Thx OCRegister)

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News

Jack in the Box to Close 40 Locations

Before the end of the current fiscal year (ending October 3, 2010), Jack in the Box announced plans to close 40 under-performing company-operated restaurants. The restaurants effected are located across 7 states, primarily in the Southeast and Texas. Jack in the Box currently operates out of 18 states with more than 2,200 locations.

The closures come as a result of a comprehensive analysis that revealed unacceptable levels of return on investment from the locations in question, and the hope is these closures will have a positive impact on the company’s future earnings and cash flow. God speed Jack, stay hungry. (Thx Yahoo!)

Categories
News

Ruby Tuesday to Close Up to 70 Locations

Ruby Tuesday Inc. has made public the information that it would be closing 40 locations during its third quarter (February), and an addition 30 units during the “next several years”. These closures would total almost 10% of its domestic locations. The closures most likely come from sluggish sales and increased renovation costs in their efforts to rejuvenate their dining experiences. Whenever a restaurant closes, it definitely is a sad day in the Foodbeast world. Regardless, keep your heads up and do your best to eat on.