1. Expanding the Global Restaurant Base
McDonald’s management aims to increase the global restaurant count by approximately 10,000 units over the next three years, bringing the total to 50,000 establishments. In the US market alone, executives predict the addition of around 2,000 new stores by 2027. The remaining expansion will primarily target large international markets like China. This aggressive growth strategy aims for an annual store growth rate of 4% to 5%, making it the fastest period of expansion in the brand’s history.
2. Building on Current Growth Momentum
The fast-food chain has delivered impressive growth in recent quarters, with comparable-store sales up 9%. This growth, driven by increased customer traffic and higher spending per visit, has enabled McDonald’s to maintain a strong position in the competitive fast-food industry. To sustain this momentum, the company plans to capitalize on factors such as providing quality food at competitive prices and exploring opportunities in digital ordering, delivery, and drive-thru services. McDonald’s drive-thru dominance positions it well for continued success in this area, despite competition from other companies.
3. Targeting Increased Profitability
Wall Street has shown excitement over McDonald’s improved profitability, with its operating profit margin reaching a record 46% of sales in 2023. The combination of enhanced sales growth, pricing strategies, cost reductions, and operational efficiencies contributed to this achievement. The company aims to further increase its profit margin, potentially reaching 50% of sales by 2027. This focus on profitability is expected to generate excellent returns for patient shareholders, as long as McDonald’s steadily progresses towards its 2027 goals in the years ahead.
In summary, McDonald’s growth plan outlines an ambitious roadmap for expanding its global presence, leveraging current growth momentum, and targeting increased profitability. By executing on these strategies, the company aims to deliver strong returns to investors in the coming years.