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01/03/2006 . by Felicity Lawrence . Guardian . UK  
 
McDonald's to close 25 high street branches  
 
 

There is a scene in Super Size Me, the documentary about McDonald's, in which its maker, Morgan Spurlock, inflicts what looks like a killer blow to the brand's image. Spurlock has had nothing but McDonald's food and drink for nearly a month and his medical tests are alarming his doctor. "Your liver has turned to pate," he warns, urging Spurlock to stop eating McDonald's at once or risk death.

Confirmation that such bad publicity has wounded the world's largest fast food chain appeared to come this week with the company's admission that it is to close 25 UK branches. Denis Hennequin, president of McDonald's Europe, has admitted that the company has been struggling in the UK in the face of a consumer backlash.

McDonald's posted figures in the US that showed that its profit margins at the stores it operates itself in Europe had dipped from 15.6% to 14.9% in 2005. Analysts said, however, that it was too early to say that McDonald's was finished in the UK. Although it is closing 25 high street stores, it expects to open several new ones in places that attract higher numbers of shoppers.

Tim Lang, professor of food policy at London's City University, said: "The critics of McDonald's should be cautious about premature ecstasy. The company is going through worldwide restructuring and targeting itself much more carefully. These closures say more about demography than any decline in interest in fast food."

McDonald's said its UK closures were routine. "It's nothing new," said Amanda Pierce, a spokeswoman. "We are continuing to grow the business, but we've been in the UK 31 years and shopping habits have changed. We want the right restaurants in the right place."  
 
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