McDonalds To Close 700 Locations After Major Profit Losses
Increased consumer awareness and decision to eat healthier has caused fast-food company McDonald’s to close a total of 700 chain locations this year. Just in the earlier part of 2015, the double arch company began to close down 350 stores; however, Wednesday it announced another 350 branches would be closing its doors to the public.
McDonald’s is experiencing a plummeting drop in profits due to stiff competition from healthier fast-food joints, more mindful consumers, and ‘an overcomplicated menu,’ according to Fortune. The golden arch company has experienced a 2.3% decrease in sales and a 28% drop in operating profits during the first three months of 2015. Projected sales for the next few months aren’t expected to get any better either.
The chain anticipated a drop in sales during the first quarter of the year, but experienced losses far beyond expected. By closing 700 of the poorest performing stores, McDonald’s hopes to regain its footing in the food business and re-establish itself as a top contender for hungry citizens to benefit from when on the go.
But unless reform is implemented by McDonald’s, where it begins to offer organic, local fare with GMO-free options, one can only predict it will continue to experience decreased sales in the near future.
The company’s new CEO, Steve Easterbrook, believes that his plan, which will be unveiled on May 4, will help to restore the reputation of the restaurant. “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,” said Easterbrook.
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