McDonald's To Close 500 More Stores In 2016 As Consumers Adopt Healthier Habits

McDonald’s To Close 500 More Stores In 2016 As Consumers Adopt Healthier Habits

on August 4, 2016

In 2015, McDonald’s closed 700 restaurants to save money. 2016 doesn’t seem to be faring much better for the fast food corporation…

Amanda Froelich, True Activist
Waking Times Media

To bolster profits in the years to come, McDonald’s will be shutting down approximately 500 more stores from its super-sized global restaurant network. The Streetreports that the poorest-performing Golden Arches establishments will be shuttered up and most of the closings are expected to be in the U.S.

As you might remember, the corporation ended up closing 700 restaurants around the world in 2015– 350 more than was initially planned. At the time, McDonald’s spokesperson Beca Hary relayed to the press that the move was made to reduce financial losses.

She wrote in an email:

“It’s important to note that while we will have a net reduction in restaurants [in the U.S.], the impact is minimal in comparison to the 14,000 restaurants we operate across the U.S.”
She added that “we consistently review our restaurant portfolio and make strategic decisions to better position our business for the future.”

Hary has presently refused to comment on the closing of +500 Golden Arches restaurants.

Though the company intends to close 500 stores, it is opening 1,000 more in various locations around the world. By releasing the dead weight of failing restaurants and gaining 500+ establishments in locations where the public isn’t as educated on the adverse effects of eating fast food, McDonald’s hopes to revitalize its stocks and popularity.

To be fair, the tactic did work in 2015. In the final quarter of 2015, McDonald’s stock value rose dramatically because investors saw an opportunity for the business to start making money again.

This short-term solution might buy McDonald’s more time, but it seems clear from trends in first-world nations, such as the United States, that consumers are fed up with low-quality offerings and are ready to invest in their health. Wilted lettuce, low-quality dressings, andmystery meat won’t cut it any longer, which is why chains like Amy’s Fast Food Drive-Thruand Chipotle have been such successful ventures.

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