Looks like all the poor sales numbers are finally doing some damage to McDonald's. NRN reports that due to a disappointing Q1, McDonald's will be closing down 350 of its most underperforming restaurants.
Targeted for closures are 220 restaurants in the United States and 130 in Japan. Same-store sales have been falling around the world ranging from 0.6 percent to 8.3 percent. McDonald's Corp., which has yielded a net income of $1.2 billion in the previous year, fell to $811.5 million. This is roughly a 26 percent drop.
McDonald's CEO, Steve Easterbrook, says that the company is still evolving and that it's still trying hard to meet consumer needs. According to a statement by Easterbrook, McDonald's Corp. is currently working on a plan to improve its performance. The CEO says plans on sharing details will be announced publicly May 4.
While the stores closing are only a small percentage of McDonald's massive global span, it could very much be the beginning of a growing trend of closures. Unless Easterbrook hatches a great recovery plan.