McDonald’s will close more than 2,000 U.K. stores, including its main franchise in Sheffield and its main outlet in Manchester.
The chain announced Monday that it would close all of its U to U locations and shuttered its U-rated restaurants and shops, as well as its U+1 franchise.
It will reopen its restaurants and locations only in a few places, including some in major cities, the chain said.
The chain’s U+ franchisees will be given a month to sell their assets to keep their jobs, the company said in a statement.
It added that it has “decided to make significant reductions in some of its largest U-to-U franchised franchisees and will continue to work with those franchised in a responsible manner to ensure that our customers are served the freshest, most flavorful and highest quality food available.”
McDonald’s, which had its biggest U.L. loss ever in 2016, reported a fourth-quarter loss of $2.85 billion, or $2,534 per share, in the third quarter.
The company said it would sell off about 5,000 of its stores and close about 1,000 more U- to U-owned outlets.
McDonald’s also plans to make changes to its advertising.
The menu is “not fully aligned” with the fast-casual environment and will no longer include the same types of items and offerings that have made McDonald’s a success in the U.P., it said in the statement.
The U.A.E. will see a “slight increase” in the number of U-plus restaurants in the coming years, the statement said.
It also said it plans to expand its U, U+ and U+2 outlets in Britain and Europe.
McDonald’s U.a.e. and U-a.i. franchises have been hit hard by rising prices for food in the past few years, and they have struggled to maintain revenue growth.
In the past several years, McDonald’s has cut about 1 million jobs worldwide, and the chain has lost about 2.2 billion U.U.s in the last two years.
The news came as McDonald’s shares rose 0.6 percent to $19.96 in after-hours trading.