McDonald’s New Roadmap
McDonald’s, the renowned fast-food chain, has unveiled CosMc’s, a novel restaurant concept in the United States named after the alien mascot introduced in the 1980s. As part of an ambitious development plan, ten establishments featuring a concise menu with dessert options are set to be operational by the close of 2024. Below are the five key points that an investor should be aware of. >
• Accelerating the Arches. McDonald’s #MCD introduced the Accelerating the Arches strategy three years ago, designed around the three pillars of growth represented by M-C-D (M – maximum marketing; C – commitment to core policies; D – doubling down on the four Ds (delivery, digital, drive-thru, and development). Since 2019, the company has experienced remarkable growth exceeding 30%, laying the groundwork for one of the most expansive consumer platforms globally.
• A large bet on both physical and digital growth. Presently, McDonald’s boasts over 40,000 restaurants and plans to elevate this number to 50,000 globally by the end of 2027. This expansion phase is poised to be the swiftest in McDonald’s history. However, the focus extends beyond physical presence to encompass digital expansion, with 150 million users actively engaging with McDonald’s over the past year, collectively spending over $20 billion. The aim is to increase the number of active users to 250 million by 2027, generating an annual sales figure of $45 billion through loyalty programs.
• The core of the business. McDonald’s global acclaim is at the heart of the enterprise, anchored in its fundamental menu featuring iconic items like the renowned fries and franchisee creations such as the Big Mac and Egg McMuffin. The collective annual sales for these flagship offerings amount to $75 billion. Given the sustained and unwavering demand, there are strategic intentions to introduce Best Burger and McCrispy to nearly all McDonald’s markets in the forthcoming years. Overall, McDonald’s menu encompasses 17 brands with billion-dollar turnovers, positioning them as formidable contenders among the largest consumer companies.
• Position of strength. In essence, this represents the chance to explore and evaluate potential options. A recent illustration from CosMc’s involves a trial phase of 10 stores in the United States featuring specialty drinks and coffee.
• Creation of a digital ecosystem. “Connecting our restaurants worldwide to millions of datapoints across our digital ecosystem means tools get sharper, models get smarter, restaurants become easier to operate, and most importantly, the overall experience for our customers and crew gets even better.” McDonald’s has recently unveiled a collaboration with Google Cloud, ushering in cutting-edge cloud technologies and generative AI solutions for its restaurants. Starting in 2024, McDonald’s will introduce a newly crafted operating system tailored to fuel all digital interfaces for McDonald’s customers and restaurants. This comprehensive system will extend from the mobile app to loyalty programs and in-store kiosks. While integrating artificial intelligence in McDonald’s operations is not groundbreaking, these additional opportunities aim to expedite the creation of personalized solutions through McDonald’s GenAI models, ultimately enhancing operational speed and efficiency.