OAK BROOK, IL - For the first time in over four decades, McDonald’s is closing more stores than it is opening for the fiscal year.
Bloomberg reports that the fast food chain is planning to shutter 59 stores across the country to try to revive sales and cut back on costs, bringing the 2015 count to 125 new stores, and 184 closing.
This is the second significant cutback for McDonald’s this month. As we previously reported, the chain announced that it was eliminating over 200 corporate positions at its Oak Brook, Illinois headquarters, for what it called a push to recapture profitability.
“In the U.S., we will have a net reduction in restaurants, but the impact is minimal in comparison to the 14,000 restaurants we operate across the country,” Rebecca Hary, Director of Global Media Relations at McDonald's, told Bloomberg. “We consistently review our restaurant portfolio and make strategic decisions to better position our business for the future.”
The chain has been testing out different formats to recapture the public palate. As we previously reported, the company is testing a heavier emphasis on fresh produce with gourmet breakfast items in Australia, as well as lettuce burger buns in both Australia and Korea. The company has not yet brought these fresher items to the U.S., where Bloomberg states McDonald’s receives 32 percent of its revenue and where it has seen a drop in same-store sales for seven quarters straight.
Will these large moves and a fresher focus be enough to turn everything around? Closing units, a recent focus for CEO Steve Easterbrook, could reportedly reduce expenses at the very least.
AndNowUKnow will continue to report on this story as it develops.
