McDonald's Set to Open 10,000 New Restaurants in Rapid Expansion

McDonald's, the global fast-food giant, is entering its fastest-growth phase in history, unveiling plans to open nearly 10,000 new restaurants within the next four years. By the end of 2027, the company aims to operate a staggering 50,000 stores. Currently, McDonald's already boasts over 40,000 stores.

In addition to its remarkable expansion goals, McDonald's is also banking on the growth of its loyalty program. The company expects its My McDonald's Rewards program to attract 250 million active users by 2027, a significant increase from the current 150 million user base. Moreover, members of the rewards program have contributed over $20 billion in sales over the past year.

Furthermore, McDonald's is focusing on enhancing its delivery, drive-through, and mobile-order businesses, as well as improving its core-menu items to ensure customer satisfaction.

CEO Chris Kempczinski expressed confidence in McDonald's future growth trajectory: "We have a clear trajectory for future growth as we continue to build on the brand strength, global footprint, and digital ecosystem that have resulted in unparalleled competitive advantages and cemented McDonald's as one of the world's leading consumer-facing brands."

The company provided guidance for fiscal 2024, anticipating nearly 2% systemwide sales growth in constant currencies and a net new restaurant growth rate exceeding 4%. The operating margin is expected to range from mid-to-high 40%, with capital spending projected to reach approximately $2.5 billion in 2024.

Looking beyond 2024, McDonald's envisions systemwide sales increasing by around 2.5% annually, accompanied by new restaurant growth ranging from 4% to 5% each year. The company plans to incrementally increase spending by approximately $300 million to $500 million annually through 2027.

McDonald's stock experienced a slight dip of 0.8% to $284.19 in early morning trading on Wednesday, although overall, the shares have seen a positive increase of 7.5%.