Cutting the fat
In April, McDonald’s said it would close about 700 underperforming locations around the world this year, including in the U.S. CEO Steve Easterbrook, who stepped into the role on March 1, also later laid out plans to restructure the company to remove layers of bureaucracy and move more nimbly.
In any given year, some underperforming McDonald’s restaurants will close. But previously, the number of closings has been outweighed by new restaurants that open.
The U.S. store closings will be a mix of franchised and company-owned locations, Hary said. She noted that the closings are part of a strategic review intended to set the stage for the future growth. The company did not provide a list of locations expected to close.
McDonald’s Corp. has not reported an annual reduction in U.S. locations since at least 1970, according to archived filings with the Securities and Exchange Commission. For 1969, McDonald’s did not include a U.S. store count in its annual report.
The company declined to comment on the last time it reduced its U.S. store base. But given the rapid expansion that characterized its early years, it’s likely McDonald’s hadn’t pulled back since Ray Kroc founded the company in 1955.