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Franchise behemoth McDonald’s is feeling the squeeze of COVID-19’s impact on the economy just as much as the rest of the industry. <a href="https://www.nrn.com/quick-service/mcdonalds-save-1-billion-reducing-remodels-halting-new-unit-growth?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nrn-mcdonalds-to-halt-new-unit-growth-and-reduce-remodels-2712764" target="_blank" rel="nofollow">According to an article in Nation’s Restaurant News</a>, the brand is taking some drastic measures to save money.The brand announced Wednesday that president and CEO Chris Kempczinski will be taking a 50-percent salary cut, new restaurant growth will be paused worldwide and new “Experience of the Future” store remodels will be reduced. Those measures, the brand projects, will save McDonald’s $1 billion in 2020.&nbsp;In March, the franchise’s U.S. division saw same-store sales decline 13.4 percent. Globally, same-store sales fell by 22.2 percent in the same period.&nbsp;COVID-19 and the pandemic’s dire economic fallout may not be solely to blame for the franchise’s recent woes.<blockquote>A KeyBanc Capital Markets report suggests that McDonald's was also hurt by Wendy's breakfast rollout in March: "Although breakfast seemed to help McDonald’s traffic trends during January and February, we believe the morning daypart is especially vulnerable to the disruption of consumer behavior. In addition, we believe Wendy’s breakfast rollout, which drove 15% SSS growth in the first week of March, likely weighed on McDonald’s breakfast trends ahead of the heavy quarantine period."</blockquote>In March, McDonald’s announced it would <a href="https://1851franchise.com/crains-business-chicago-mcdonalds-to-phase-out-all-day-breakfast-2712641">temporarily phase out all-day breakfast</a> to streamline operations. The franchise has also secured $6.5 billion of new financing.<a href="https://www.nrn.com/quick-service/mcdonalds-save-1-billion-reducing-remodels-halting-new-unit-growth?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nrn-mcdonalds-to-halt-new-unit-growth-and-reduce-remodels-2712764" target="_blank" rel="nofollow">Read the full article at nrn.com</a>.

NRN: McDonald’s to Halt New-Unit Growth and Reduce Remodels

1851 Franchise

The franchise aims to save $1 billion after same-store sales drop 13.4 percent in U.S.

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Children's Lighthouse

Children’s Lighthouse Ramps Up Growth in First Half of 2025 With Strategic Expansions, Franchise Signings, and New Headquarters

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Right at Home

Right at Home® Named a 2025 Top Franchise Brand for Multi-Unit Owners by Entrepreneur Magazine

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Dog Training Elite

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Dog Training Elite Shares Tips To Ease Dog Anxiety for 4th of July

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Melting Pot

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Lexington Herald Leader: This Restaurant Chain Eyes a Return to Lexington After 10 Years

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Keke's Breakfast Cafe

Keke's Breakfast Cafe - John and Kimberly Ehrhard - 1851 Franchise

Empowering Leadership, One Pancake at a Time: How John and Kimberly Ehrhard Are Building a Franchise Legacy with Keke’s Breakfast Cafe

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NRN: McDonald’s to Halt New-Unit Growth and Reduce Remodels

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