Monday, Feb. 26, 2024 |
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A McDonald's golden arches is shown in 2022 at restaurant in Havertown, Pa. (AP Photo/Matt Rourke)
McDonald’s is testing a new restaurant format with customizable drinks and treats designed to appeal to afternoon snackers — and grab sales from competitors like Starbucks and Dunkin’.
The company said Wednesday it will open 10 CosMc’s restaurants through the first half of next year. One will be near the company’s headquarters in Chicago and the rest will be in Texas. The company will study the results for at least a year before determining whether to expand.
The announcement was one of the most anticipated at McDonald’s day-long investor conference Wednesday. The company also said it expects to open nearly 10,000 McDonald’s restaurants worldwide over the next four years — to reach a total of 50,000 restaurants — a pace of growth that would be unprecedented even for the world’s largest burger chain.
It plans to open 900 new stores in the U.S. and 1,900 in international markets with company operated and franchised restaurants like Canada, Germany, the United Kingdom and Australia. McDonald’s plans another 7,000 stores in international markets that are operated by licensees. More than half of those stores would be in China.
But beyond that physical expansion, McDonald’s is also looking to CosMc’s to expand its menu and service times and keep up with other fast-growing chains like Starbucks. Starbucks said last month it plans to open 55,000 stores globally by 2030, up from 38,000 today.
McDonald’s President and CEO Chris Kempczinski said CosMc’s is designed to fill in a slump in sales that the company sees in the mid-afternoon.
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