McDonalds In Trouble, To Shut Down 300 Stores

McDonald's would be shutting down 300 stores across USA, Japan and China. This is coming in the wake of decreasing sales with 11% drop in revenue and 30% reduction in profit. The company has been pushing for a major restructuring program to stem the sagging profits and public interest for its products.

McDonald's is pruning its numbers in poorly performing areas especially in China. McDonald's CFO, Kevin Ozan told Time that sales in China fell below the 5% mark and the company was undertaking a major restructuring program to push itself. In Japan the company was impacted because of the food safety scare. According to Time these were “heavy loss maker restaurants” and other chains like Chipotel and In& Out Burger have eaten in to its profits.

McDonald's has been facing an uphill task with US customers who have a very negative view of the company’s products. In a survey published by Nation’s Restaurant Survey (Via Fortune), McDonald's have been ranked 110^th out of the 111 restaurants. The negative public relations because of the on-going wage tussle and shift to more premium food have dented McDonalds’ sales. But a recently disclosed Wall Street conference call (via Inquisitr) the company is taking its competition by its horns. It is planning to introduce premium and healthier options which were earlier yanked off its menu. McDonald's today would be more open to exotic and premium foods in their menu with healthier ingredients to attract the customer.

But analysts are not writing the obituary for the company as it possesses heavy marketing muscle and its immense reach makes it a default option for many customers. With annual sales of about $31 billion in the US market, McDonald's would be plotting its revival with new menus and robust breakfast options. But work needs to be done to improve public perceptions about the menu and social responsibilities. But with deep pockets, McDonald's would unveil major strategies which would help in a turnaround in the coming year.

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