Global (Commonwealth) _McDonald’s, a publicly traded corporation and one of the world’s biggest fast food restaurant chains, aims to reach 50,000 global locations by 2027 by expanding more than 8,800 new stores and adding 100 million members to its loyalty program.
The goals are part of the fast-food corporation’s long-term strategy to increase sales throughout its already vast outlet network.
McDonald’s unveiled its new aims ahead of its investor day on Wednesday, hoping to persuade shareholders that customers’ appetites for Big Macs and McNuggets remain strong, despite Wall Street’s concerns about the economy and the danger presented by weight-loss medicines.
More information on how the burger restaurant expects to maintain enticing customers, such as phasing in an enhanced version of its burger and doubling focus on chicken, is planned. McDonald’s anticipates 4% net new restaurant growth in 2024. Adding increasing its presence will account for about 2% of systemwide revenue growth in constant currency next year.
After 2024, the firm intends to increase its restaurant count by 4% to 5% every year. In constant currency, these additional stores will contribute around 2.5% of systemwide sales growth.
McDonald’s ambitious expansion ambitions will necessitate more capital expenditure. The business forecasts $2.5 billion in capital expenditures in 2024, up from $2.2 billion to $2.4 billion in 2023. And, from 2025 to 2027, McDonald’s aims to boost capital expenditures by $300 million to $500 million per year.
McDonald’s hopes to have 50,000 stores worldwide by 2027. As of September 30, the network had 41,198 locations globally. In instance, Starbucks announced in November that it plans to have 55,000 cafés worldwide by 2030, up from its current total of over 38,000.
McDonald’s expects to add 900 U.S. sites, 1,900 restaurants in its international operated markets segment, and about 7,000 units in its international developmental licensed markets division to meet its development objective.
The IOM business of the corporation comprises areas such as France, Canada, and Australia, and it accounts for approximately half of the company’s sales. China will account for a significant portion of McDonald’s IDL sector. China will account for more than half of the division’s new sites, according to McDonald’s IDL segment. McDonald’s revealed in late November that it had purchased a minority share in its China business.
Executives have stated that the company’s present footprint is out of date and does not match where consumers are now living, notably the migration to the South and Southeast in the United States.
McDonald’s CEO Chris Kempczinski stated in January, as part of a larger statement regarding a corporate restructure, that the business will speed new restaurant construction. This is the first time the corporation has made its new development goals public.
In addition to ambitious expansion goals, McDonald’s hopes to attain a quarter-billion active members in its reward program by 2027. The firm was still testing the loyalty program in the United States on its final investor day, in 2020. However, it has now evolved into a juggernaut, increasing mobile sales and motivating customers to come more frequently.
Data will be used alongside store locations as a big competitive advantage in the future, McDonald’s U.S. President Joe Erlinger told investors on Wednesday. McDonald’s also announced a partnership with Alphabet’s Google Cloud, which would use artificial intelligence to improve restaurant operations.
Alphabet CEO Sundar Pichai said in a statement, “We’re excited to see how McDonald’s will use our generative AI, cloud, and edge computing tools to improve their iconic dining experience for their employees and customers all over the world.”
