Iceland to Lose McDonald's

Reykjavik has been home to Iceland’s three McDonald’s restaurants since 1993, but not for much longer: The economic slump is forcing the closure of all three eateries. “The economic situation has just made it too expensive for us,” said Magnus Ogmundsson, the managing director of Lyst Hr., which holds the McDonald’s franchise in Iceland. A Big Mac in Reykjavik already sells for 650 krona ($5.29)—but even that price can’t generate a significant enough profit for the chain to maintain its presence in Iceland. “The unique operational complexity of doing business in Iceland combined with the very challenging economic climate in the country makes it financially prohibitive to continue the business,” said Theresa Riley, a spokeswoman at McDonald’s headquarters. “This complex set of challenges means we have no plans to seek a new partner in Iceland.”