McDonald’s To Close More Restaurants As Fast-food Chain Crashes

McDonald's future under threat as fast-food chain is forced to close more stores worldwide

McDonald’s have confirmed that they are closing 500 further chains around the world amid a a staggering drop in sales at the fast-food giant. 

McDonald’s spokeswoman Becca Hary confirmed the closures just days after the company withdrew its branches from the Middle East and three Latin American countries.

“It’s important to note that while we will have a net reduction in restaurants [in the US], the impact is minimal in comparison to the 14,000 restaurants we operate across the US. We consistently review our restaurant portfolio and make strategic decisions to better position our business for the future,” Hary told The Street. reports:

In 2015, McDonald’s closed 700 under-performing restaurants primarily in Japan, the US and China – 350 more than it had planned – due to a significant decline in global sales. McDonald’s CEO Steve Easterbrook had informed the Wall Street Journal last year that drastic changes were required to be implemented in order to improve McDonald’s financial struggles and its suffering reputation.

“I think there is a hunger and an interest in our business to embrace change. McDonald’s management team is keenly focused on acting more quickly to better address today’s consumer needs, expectations and the competitive marketplace.”

McDonald’s shares have risen 24% during Easterbrook’s 15-month-plus tenure during which he dismissed corporate employees, adjusted kitchen operations, and executed his biggest move – all-day breakfast in the United States. McDonald’s ended 2015 with 36,525 restaurants globally, up about 267 from 2014.

In 2016, McDonald’s has pegged its capital expenditures at $2 billion, with half allocated to reinvestment in its best locations and the other half to open about 1,000 new restaurants. According to Reuters, McDonald’s has received more than half a dozen bids for its China and Hong Kong stores in an auction that could fetch up to $3 billion.

Nonetheless, the fact is McDonald’s has been struggling. The Washington Post reports:

Each time McDonald’s has announced how much money it’s making, the company has been forced to share an embarrassing truth: Americans are eating less and less of its hamburgers, chicken nuggets and French fries. The routine became so consistently depressing that McDonald’s decided to quit sharing monthly performance data altogether in March.

  • commonlaw

    Yes!! Eat your own FRANKENFOOD…

  • Matt Treacy

    Wouldn’t be a problem if they went back to serving food instead of tasteless cardboard

  • Lets Build

    I think the problem might be that they are stretching themselves too much.

    They ought to focus on 4 types of burgers. 4 Types of drinks. 2 types of Ice Cream and French fries.

    Keep it simple stupid.

  • monalisa15

    Bring back the original cherry and apple pies.

  • CrazedLeper

    This is the end result of chasing money for decades. Had they chased quality, we’d still want to eat it.

    • Red One

      Like all other businesses of this current generation who are spending more time and energy amassing money than listening to the recommendations and suggestions of their customers, McDonalds does not care about anything except the money!

  • Scotster

    They don’t serve food anymore, they serve petrochemicals(just look at the ingredients) with food labels that have enough salt in them to preserve a mummy for thousands of years.

    • tracey marie

      look at the trumpette complaining about GMO while his wet dream trump wants to get rid of all regulations and bring back coal.

      • Scotster

        My wet dreams are much more interesting than that. Although its been almost 40 years since I had one and I think that last one was about Farrah Fawcett.