McDonald’s to Permanently Close 200 U.S. Locations Due to COVID
We’re sad to report that McDonald’s is closing 200 U.S. locations for good, thanks to the financial burdens caused by the global pandemic.
According to the Financial Times, McDonald’s reported its lowest quarterly profits in 13 years. The chain’s net income fell by 68 percent!
Furthermore, the company’s revenues have fallen 30 percent in the second quarter and global same-store sales fell by 23.9 percent.
“In many markets around the world, most notably in the U.S., the public health situation appears to be worsening,” CEO Chris Kempczinski said in a statement, according to CNBC. “Nonetheless, I believe that Q2 represents the trough in our performance as McDonald’s has learned to adjust our operations to this new environment.”
“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 added.
Of course, McDonald’s isn’t the only chain that is struggling.
Reportedly, IHOP, Denny’s, Ruby Tuesday, and TGI Fridays have all permanently shuttered locations due to hardships.
Hopefully, we can see a swift change in the coming months.