McDonald’s Empire Set for Unprecedented Growth Over the Next 4 Years
McDonald’s has ambitious plans to open almost 10,000 new restaurants in the next four years, aiming for an unprecedented pace of growth for the world’s largest burger chain. In an investor update, the Chicago-based company set a target of operating 50,000 restaurants globally by the end of 2027, up from 40,275 at the beginning of the year.
The expansion includes 900 new stores in the U.S. and 1,900 in international markets, covering company-operated and franchised restaurants in countries such as Canada, Germany, the United Kingdom, and Australia. Additionally, McDonald’s plans to open 7,000 stores in international markets operated by licensees, with a significant focus on China.
The surge in demand for delivery services has prompted McDonald’s to strategically position new restaurant locations closer to customers, ensuring faster and hotter food deliveries. CEO Chris Kempczinski emphasized the importance of physical restaurants over delivery-only kitchens, acknowledging that customers still value the dining experience with their families.
McDonald’s is not deterred by concerns about cannibalizing sales from existing locations, as it sees underserved areas in the U.S. and aims to secure prime real estate before competitors. The company plans to address restaurant congestion by incorporating dedicated pickup areas for delivery drivers in new establishments.
The move towards cloud computing is another notable development, as McDonald’s announced a multi-year partnership with Google Cloud. This transition is expected to enhance efficiency, with faster menu recommendations on ordering kiosks and in the drive-thru lane, as well as optimized staffing recommendations for improved operational management.
Despite the competitive landscape, McDonald’s remains confident in its ability to invest in new stores and technology, driven by strong global performance. In the third quarter, the company reported nearly a nine percent rise in same-store sales worldwide, even as U.S. traffic experienced a slight decline.
McDonald’s is prioritizing core menu items like Quarter Pounders and fries, which constitute 65 percent of sales systemwide. Innovations, such as burgers with improved buns, cheese, and Big Mac sauce, are set to roll out in U.S. restaurants by the end of 2024 and in most other markets by the end of 2025.
The company is also capitalizing on the popularity of chicken, with annual sales reaching $25 billion, on par with beef. Plans include introducing the McCrispy sandwich to nearly all global markets by 2025.
Additionally, McDonald’s sees significant growth potential in coffee sales, with a focus on promoting the McCafe brand globally. The company aims to streamline its approach by reducing the number of equipment suppliers, ensuring more consistent coffee quality across its outlets.
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