McDonald's Plans Massive Expansion '10,000 New Restaurants by 2027'

McDonald's aims to launch roughly 10,000 new restaurants worldwide by 2027, potentially marking its most rapid expansion phase to date, as announced on Wednesday.

The company outlined intentions to boost sales from its loyalty program, aiming to reach $45 billion, doubling its current figures.

Additionally, they aim to expand their user base to 250 million customers by 2027, building upon the existing 150 million users generating more than $20 billion in annual system-wide sales.

Despite fluctuations in U.S. consumer spending, McDonald's has maintained its stability, largely due to its cost-effective menu offerings, aggressive promotional strategies, and robust marketing campaigns.

During the company's investor day, CEO Chris Kempczinski expressed caution in making forecasts for the next year, citing the consumer's demonstrated "significant resilience."

McDonald's plans to launch approximately 7,000 outlets in its international developmental licensed markets, encompassing nations like China, India, Japan, and Brazil, according to CFO Ian Borden.

Borden mentioned that over half of these upcoming new outlets are earmarked for China, McDonald's second-largest market. The company recently secured an agreement granting it increased operational control within the region.

Worldwide, this expansion effort aims to increase the total number of stores to around 50,000 by 2027.

Additionally, McDonald's "Best Burger" initiative, focused on enhancing burger quality, is set to expand to nearly all markets by 2026, extending from its current presence in approximately 70 markets.

In 2024, McDonald's anticipates nearly a 2% increase in system-wide sales from new restaurants, calculated on a constant currency basis, in contrast to the projected 1.5% growth expected for 2023.

The company noted experiencing business implications in several Middle Eastern markets and a few markets outside that region due to the ongoing conflict, affecting its operations.

McDonald's collaborated with Alphabet's Google Cloud to implement artificial intelligence (AI) solutions across its global chain of restaurants.

This initiative aims to enhance store visibility, identify cost-saving opportunities, and facilitate quicker delivery of hotter, fresher food to customers.