Fast food giant McDonalds is planning to downsize rather than supersize this year as it announced plans to shut 700 stores due to falling profits.
It had originally planned to shut 350 branches in 2016, but has now doubled that figure to 700. According to a report that appeared in the Washington Times, both McDonalds and Coca-Cola are reevaluating their business models due to poor performance over the last year.
Last year, a Gallup survey revealed that the majority (63 per cent) of Americans surveyed said they are actively avoiding traditional fizzy drinks, prompting CEO Muhtar Kent to say the brand is operating in a “very challenging environment”.
McDonalds are facing similar challenges, with a growing number of consumers opting for more healthy food choices. This led the brand to state that it had “negative guest traffic in all major segments”.
Its sales figures showed that its per-location sales dropped 2.3 per cent worldwide.
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