The Big M loses it’s Size

For the first time since 1977, one of the largest restaurant chains inMcDonalds-Closing the world, McDonald’s, is projected to close more stores than open in the United States. Over the past two years, McDonald’s has been suffering from decreasing revenue and drops in profit from stores worldwide. Increasing numbers of competitors in the United States, economic instability in Europe and strict food safety regulations in Asia have effected the performance of McDonald’s. Already in the first quarter of 2015, McDonald’s closed 350 stores performing poorly in Japan, United States and China hoping it will drive profits upward. McDonald’s CFO Kevin Ozan is implementing turnaround strategies to “win over the millions of burger-eaters.” The company’s approach within limited service fast food is labeled to be outdated and far from trending dietary factors. This generation, the Millennials, are prone to be more health-conscious and interested in key words like “organic, free range, locally grown” which are areas that McDonald’s is incoherent with. With McDonald’s lagging attempt to follow trends, competitors continue to grow like Chipotle which caused the biggest drop in sales to McDonald’s with its entrance into the limited service industry. McDonald’s has not officially disclosed the number of stores closing but it is speculated that a target of 700 restaurants with poor sales will be shutting down this year.

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