Looks like trouble is on the horizon for the golden arches ...
Fast-food giant McDonald's has announced they will be shutting down about 200 locations in the United States this year.
CFO Kevin Ozan stated lower-volume locations, many of which are inside Walmart stores, will be closing, per his second-quarter earnings call.
“The U.S. is accelerating some restaurant closures previously planned for future years. Of the 200 U.S. closures for this year, over half are low-volume restaurants in Walmart store locations," Ozan told the Restaurant Business Online.
McDonald's began opening up in Walmarts in the '90s. However, numerous have been shut down over the past few years. Despite having a peak year in 2014, the fast-food company has had to close more stores every year. Even so, they are still planning to open 350 net new locations within the year, with an emphasis on drive-thru ability.
The second quarter of 2020 was McDonald's lowest quarterly profit in 13 years. The company's revenue tumbled by at least 30 percent, while its global, same-store sales fell by 23.9 percent.
CEO Chris Kempczinski claims the international pandemic certainly has had an impact on these numbers:
“In many markets around the world, most of notably in the U.S., the public health situation appears to be worsening. Nonetheless, I believe that Q2 represents the trough in our performance as McDonald’s has learned to adjust our operations to this new environment.”
Countless restaurants and retail businesses have had to close as a result of the coronavirus and its financial effects.
What do you think of all these closings? Do you have a floundering McDonald's location near you? Share in the comments!