The fast food giant is reportedly set to shrink its presence inside Walmart from around 500 to 150 across the US.
At the peak of their partnership, McDonald’s operated around 1,000 locations inside Walmart stores. In moves accelerated by the pandemic, McDonald’s began to signal to investors that shops inside lower-volume Walmart’s were beginning to close. It has been reported that McDonald’s Walmart locations were generally less profitable than standalone McDonald’s restaurants.
McDonald’s has had in-store restaurants at Walmart stores for around 30 years, however it has become more and more clear over the past few years that the quick-service giant has been gradually downsizing its footprint.
According to Walmart, there are plans in place to convert the former McDonald’s locations into other restaurant type services. Currently, the retailer is testing a number of locations with Taco Bell and Domino’s and in other stores, the vacant spaces have become other types of shops, offering a wide range of products including tool rental and hair braiding.
