Franchise owners have cited falling profits caused by the collapse in the Icelandic krona, as a reason for shutting the three Reykjavik restaurants.

McDonalds, long considered a symbol of globalisation, and is the world's largest chain of hamburger fast food restaurants according to Bloomberg. It opened in Iceland 16 years ago.

In July, McDonalds announced it would open 36 new Australian restaurants this year (up from the 21 it opened last year) bringing the total number of national outlets to 815.