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McDonald's growth bites the dust with shrinking U.S. store count

Though McDonald's thrived during the recession with its dollar menu, fast casual chains like Chipotle and Five Guys Burgers and Fries that focus on healthy, quality foods have eroded the company's dominance.

June 22, 2015

McDonald's restaurant footprint is shrinking, perhaps for the first time since 1970 and maybe in its entire history, according to an Associated Press reviewof the company's regulatory filings. The burger chain plans to close more U.S. restaurants this year than it will open in 2015.

McDonald's spokesperson Becca Hary declined to comment on specific numbers to AP, but said in comparison to its 14,300 locations in the U.S., the closings would be "minimal."

Though McDonald's thrived during the recession with its dollar menu, fast casual chains like Chipotle and Five Guys Burgers and Fries that focus on healthy, quality foods have eroded the company's dominance, AP said. Coupled with an "internally focused organization" lacking fresh perspectives and a menu deemed too complicated by many, the company has found itself failing to keep pace with changing consumer tastes.

In April, McDonald's announced the closing of 700 stores worldwide, both franchised and corporate-owned, this year. However, the closings are part of the company's strategic growth plan designed to set the stage for future success, Hary told AP.