- McDonald’s is closing 200 locations in the United States.
- The closings are permanent.
- The closings are also due to the coronavirus pandemic and lost profits.
McDonald’s has announced that it will be closing 200 U.S. locations permanently. They blame the closings on the coronavirus pandemic. Most locations were closed for months and now they are seeing the lowest quarterly profits in 13 years.
CEO Chris Kempczinski said, “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.”
Fast food chains like McDonald’s are closing locations due to the pandemic
“I’m certainly not qualified to make any predictions around whether we’re going to be in recession or not, but I’d certainly say there’s a lot of warning signs out there that would suggest that the consumer sentiment and consumer concerns about the economy is negative and going in the wrong direction,” he later added.
Other reports say that sales are up in July. McDonald’s is not the only fast food restaurant that is struggling during the pandemic. IHOP, Ruby Tuesday, TGI Fridays, and Denny’s are all closing locations around the United States. In addition, Souplantation, Sweet Tomatoes, and Le Pain Quotidien have all shut down for good.
No word yet on which locations are shutting down.