Fast food giant admits it quietly closed 350 stores in Q1
Source: Kit Daniels |
McDonald’s closed 350 stores in the first three months of 2015 and is planning to close an additional 350 by the end of the year.
The struggling fast food giant recently announced it was closing 350 poorly performing stores this year, but on Wednesday McDonald’s admitted it had closed a previously unannounced 350 stores in the U.S., Japan and China.
“Earlier on Wednesday, McDonald’s reported an 11% decrease in revenue and a 30% drop in profit for the first three months of year, a continuation of its troubles in the last two years as it has struggled to compete with new U.S. competitors, a tough economy in Europe and a food safety scare in Asia,” Fortune reported.
McDonald’s started falling into a steep decline after customers began seeking healthier alternatives, a decline which may prove terminal for the world’s largest fast food chain.
It was definitely a sign of the times when Hillary Clinton stopped to eat at Chipotle while campaigning in Iowa earlier this month, two decades after her husband famously stopped at a McDonald’s while jogging.
“The world is starting to ask what they’re truly eating in their food — and the new conglomerate of natural grocers and restaurants are trailblazing the way into an entirely new economic environment,” Anthony Gucciardi wrote. “In other words: people are simply tired of shoveling garbage into their bodies, and they’re not going to put up with it anymore.”
And price conscious consumers aren’t just limited to McDonald’s nowadays: natural food outlets such as Whole Foods are offering organic foods at the same price as a Big Mac with fries.
“McDonald’s is a huge company, a huge supply chain spread everywhere, and it’s kind of getting nibbled at the margins by all these upscale burger chains, organic places [and] locally sourced food,” Yahoo finance columnist Rick Newman wrote.