Stores

McDonald’s kicks off massive expansion to meet rising demand

The fast-food chain is prioritizing growth.
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Here come the golden arches: In the face of rising demand, McDonald’s plans to expand its footprint to 50,000 stores by 2027, marking “the fastest period of growth in Company history.”

The chain’s footprint as of September 30 was 41,198 locations, so the expansion would add more than 8,800 additional restaurants. The pace of these openings is set to accelerate over the next four years, hitting a run rate of 1,000 gross openings in 2027.

The announcement is an update to McDonald’s ongoing “Accelerating the Arches” growth strategy, which also includes additional investments in delivery, digital, and drive-thru services.

Some highlights include a plan to increase its active loyalty base to 250 million and expand its “Ready on Arrival” option in key markets for mobile customers.

  • Connected to this effort is another goal for 30% of delivery orders to come through mobile by 2027, as McDonald’s continues to reimagine itself as a digital restaurant.
  • McDonald’s is also collaborating with Google Cloud on a strategic partnership to employ generative AI solutions to accelerate automation and help managers identify and solve disruptions.

The company is hot off a strong Q3, when it reported a 9% jump in global comp sales. CEO Chris Kempczinski told investors at the time that its marketing campaigns and consumers’ desire for affordability were factors in its growth.

“Between inflation remaining high, the elevated cost of fuel, interest rates, housing affordability pressures and more, consumers all over the world are having to pay more and more for everyday goods and services, proving time and time again in difficult economic times, the McDonald's brand and our positioning on value is an opportunity for us,” he said.

Earlier this year, the company also revealed plans to launch a spin-off restaurant called CosMc’s. The restaurants are based on an alien character featured in the company’s advertisements in the late 1980s and early 1990s.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.