McDonald's Closing Hundreds of Stores - Mostly In Japan

McDonald’s Closing Hundreds of Stores – Mostly In Japan

NEW YORK – (MCD) – Hundreds of McDonald’s restaurants have already been closed this year amid the company’s financial struggles — and hundreds more are set to close after Wednesday’s first quarter earnings report.

According to McDonald’s executives, the company saw a global sales decrease of 2.3 percent in the quarter that ended March 31. The company also reported an 11 percent decrease in total revenues, reports Fortune.

The report revealed that 350 McDonald’s locations were closed worldwide during the quarter but apparently that wasn’t enough. Company executives said they planned to slash $72 million of asset write-offs by closing “about 220 under-performing restaurants, primarily in the U.S. and China,” as well as 130 restaurants in Japan.

The restaurant giant does not plan to shed any locations in Canada.

The report did not reveal which locations would soon be serving their last Big Macs.

“We took a meaningful step [toward long-term growth] in the first quarter with the decision to close under-performing restaurants that are not contributing to our profitability,” said Kevin Ozan, McDonald’s chief financial officer, in Wednesday’s report.

Bloomberg predicts that part of McDonald’s grand plan to bounce back focuses heavily on the chain’s breakfast menu. Currently, it accounts for about 25 percent of the chain’s domestic sales. McDonald’s started testing all-day breakfast in 94 stores in San Diego this month, which the chain hopes will give it a leg-up in its breakfast wars with competitors like Taco Bell.

The company will reveal details of a turnaround plan on May 4.