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McDonald’s to close additional 220 stores

Before announcing a new turnaround plan on May 4, the ailing giant will trim its system by 2 percent globally.

McDonald’s said today that it will close 220 underperforming stores in the U.S. and China and 130 in Japan, in addition to the 350 units worldwide that were previously planned to be shuttered.

The stores to be discontinued account for about 2 percent of the 36,000-unit chain.

The new round of closings was revealed in the company’s release of financial information for the first quarter. Same-store sales for domestic units fell year-over-year by 2.6 percent, dragging down operating income by 11 percent. The franchisor acknowledged that new products and promotional efforts failed to offset heightened competition.

Management said it would reveal a new turnaround plan on May 4.

In the financial release, new CEO Steve Easterbrook vowed to follow the advice of an iconic predecessor. “McDonald's founder, Ray Kroc, made a statement about our business that is as relevant today as it was 60 years ago: ‘Take calculated risks. Act boldly and thoughtfully. Be an agile company,’” Easterbrook said.

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