By 2027, McDonald's aims to have 8,800 restaurants up and running and 100 million individuals signed up for its loyalty program. The fast food behemoth has these goals in the far future as part of its strategy to increase revenue at all of its locations.
In an effort to reassure shareholders that demand for its Big Macs and McNuggets is continuing to rise despite economic concerns, McDonald's revealed its new objectives in the lead-up to its investor day on Wednesday, December 6.
The fast food chain is anticipated to provide further information on its strategies to retain customers, which may include gradually introducing an upgraded burger and increasing its chicken offerings, as reported by CNBC.
Establishment Expansion
The projected net new restaurant growth in 2024 at McDonald's is 4%. Expanding its reach will account for around 2% of the system-wide revenue increase in constant currency next year.
A yearly increase of 4% to 5% in the number of restaurants is the company's target beyond 2024. Expanding these additional markets will result in a 2.5% increase in constant currency sales for the whole system.
Increased capital expenditure is a direct result of McDonald's ambitious expansion goals. The company's capital expenditure expectations for 2024 are $2.5 billion, up from $2.2 to $2.4 billion in 2023. In addition, McDonald's plans to steadily boost its capital spending from $300 million to $500 million per year from 2025 to 2027.
With an eye toward 2027, McDonald's aims to have 50,000 outlets worldwide, according to a press release. As of the end of September, the chain's global presence included 41,198 establishments.
The United States and its overseas-operated markets segment, which includes countries like France, Canada, and Australia, will house the majority of McDonald's upcoming locations. Its present footprint, according to executives, is out of date and does not reflect where customers currently reside, particularly the migration to the South and Southeast of the US.
As part of a larger statement on a business reorganization, McDonald's CEO Chris Kempczinski said in January that the chain would speed up the development of new outlets. The business has never before revealed its new development goals like this.
More Goals for Loyalty Program, Cloud Tech
In addition to its lofty goal of increasing its physical presence, McDonald's aims to double the number of people using its loyalty program by the year 2027. Even in 2020, when the firm had its last investor day, it was still doing a US loyalty program trial. Yet, it has now expanded into something huge, increasing mobile sales and luring consumers back.
To further enhance operations across all of its locations, McDonald's has recently announced a collaboration with Google Cloud, a division of Alphabet.
In a statement, Alphabet CEO Sundar Pichai expressed his excitement about McDonald's plans to use their generative AI, cloud, and edge computing resources to enhance their iconic eating experience for staff and customers worldwide.
