McDonald’s Closing Another 200 Restaurants – Majority Inside Walmart
McDonalds is accelerating planned restaurant closures, with more than 100 restaurants inside Walmart stores slated to be shuttered. Of course, sales were made worse by the COVID-19 Pandemic. Included in the closures will be 200 locations in the U.S., executives said. More than half of those being inside of Walmart stores.
Is McDonald’s Going Out of Business?
Of course, during the pandemic, drive-thru restaurants have flourished because of their no-contact nature. That could be part of why restaurants inside retail stores are suffering. However, the company has not filed bankruptcy, nor is it planning on going out of business.
McDonald’s Restaurants Closing
“The U.S. is accelerating some restaurant closures previously planned for future years,” CFO Kevin Ozan said on McDonald’s second-quarter earnings call. “Of the 200 U.S. closures for this year, over half are low-volume restaurants in Walmart store locations.”
In other words, these under performing locations were planned for closure at some point in the future. But, because of the pandemic and low sales, the company has moved them up to be closed now.
How Many McDonald’s Locations Are There?
The biggest number of McD’s restaurants was in 2014, when there were 14,350 locations. However, since then, the Big Mac purveyor has closed units each year. Now they are down 3.6% with 13,835 restaurants remaining, according to the company’s second-quarter 2020 earnings release. In the 1990s, McDonald’s added hundreds of locations inside Walmart stores.
Our hearts go out to the employees affected by these shutdowns. And, to the consumers who rely on them.
COVID Retail Apocalypse
This news comes on the heels ofretail giants such as J.C. Penney declared bankruptcy and plans to close 200 stores, And, Victoria’s Secret and Bath & Body Works announced they were closing 300 stores. Gordmans bankruptcy and store closings. Tuesday Morning stores declare bankruptcy. And, of course, Pier One Imports closing all of their stores. Shortly after Neiman Marcus, another department store giant, declared Chapter 11 bankruptcy amid the coronavirus pandemic. And, most recently The Children’s Place announced they would close 300 stores. and 24-Hour fitness closes doors to nearly half of its clubs.
See all the 2020 Stores Closing here.
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Source, Restaurant Business Online