McDonald’s Corp. will downsize by 59 domestic locations this year, slimming its U.S. system for the first time in more than four decades.
The fast-food giant will close 184 stores and open 125 new ones during 2015, according to Bloomberg, as the company continues its effort to revive slumping sales and slash costs. McDonald’s said in June that it would shutter more restaurants this year than it would open but declined to give an exact figure.
“In the U.S., we will have a net reduction in restaurants, but the impact is minimal in comparison to the 14,000 restaurants we operate across the country,” McDonald’s spokeswoman Becca Hary told Bloomberg. “We consistently review our restaurant portfolio and make strategic decisions to better position our business for the future.”
Closing units may help McDonald’s cut back on operating expenses. Earlier this month, the company announced that it had eliminated 225 jobs, including 135 at its Oak Brook, Ill., headquarters.
Same-store sales at the company’s domestic locations fell 2 percent year over year in the second quarter ended June 30, while operating income fell 6 percent.