McDonald’s Biggest US Rival Closes Over 700 Restaurants

America’s fast-food pecking order may be quietly shifting — and one longtime giant is suddenly looking a lot smaller.

McDonald’s is inching closer to total dominance on U.S. soil after its biggest domestic rival, Subway, slammed the brakes on hundreds of locations in a single year.

The sandwich chain quietly shuttered a staggering 729 U.S. restaurants in 2025 — marking its 10th straight year of shrinking its once-massive footprint. Subway still holds the title as the country’s largest fast-food chain, but just barely, with 18,773 locations compared to McDonald’s roughly 14,000.

And the gap is closing.

Just a decade ago, Subway was everywhere — boasting more than 27,000 stores across the U.S. Fast forward to today, and over 8,000 of those locations have vanished, signaling a dramatic pullback that’s hard to ignore.

Company insiders insist the closures are part of a “smart strategy,” focusing on better locations and stronger-performing restaurants instead of sheer volume. In other words, fewer stores — but supposedly better ones.

Still, the optics are tough.

The brand, now owned by Roark Capital after a $9.6 billion deal in 2024, is in the middle of a major overhaul. New CEO Jonathan Fitzpatrick — a fast-food veteran with ties to Burger King — has been tasked with turning things around.

And he’s got his work cut out for him.

With inflation squeezing wallets, Subway is scrambling to win back customers by going back to basics: cheap eats. The company recently launched its first-ever value menu, with 15 items priced under $5 — including $4.99 subs clearly designed to channel nostalgia for the iconic $5 Footlong era.

But here’s the problem: McDonald’s is already dominating that lane.

The Golden Arches has been aggressively rolling out budget-friendly deals, from combo meal steals to a new Under $3 menu packed with fan favorites like McNuggets and breakfast staples. For cash-strapped Americans, that’s tough competition to beat.

Both chains are also chasing younger customers with trendy drink menus and new flavors, trying to stay relevant in an increasingly crowded fast-food battlefield.

While Subway is shrinking at home, it’s betting big overseas — opening more than 1,000 new international locations last year alone and planning a massive global expansion push of 12,000 more restaurants in the coming years.

Worldwide, Subway still flexes serious muscle with over 35,000 locations across Europe, the Middle East, and Asia.

But back in the U.S., the message is clear: the sandwich king is losing ground — and McDonald’s is lurking closer than ever to the throne.