McDonald’s unveils ambitious expansion plans, aiming for 50,000 restaurants by 2027

McDonald’s on Wednesday unveiled its strategic vision for the future, which marks its most ambitious growth plan in 68 years.

According to a media report, the iconic fast-food giant revealed plans to surge to 50,000 restaurants by 2027, propelled by its fastest pace of expansion in history. 

The announcement follows robust sales growth in both international operated markets and international developed licensed markets, signalling the brand’s resilience and global appeal. McDonald’s recent agreement to buy back Carlyle’s minority ownership stake in its China business for $1.8 billion underscores its commitment to strategic investments.  

McDonald’s CEO and president, Chris Kempczinski, emphasised the brand’s trajectory for future growth, citing its robust brand strength, global footprint, and digital ecosystem.

“We have a clear trajectory for future growth as we continue to build on the brand strength, global footprint, and digital ecosystem that have resulted in unparalleled competitive advantages and cemented McDonald’s as one of the world’s leading consumer-facing brands,” Bloomberg quoted Kempczinski as saying.  

The company plans to focus on its core menu items, introducing the “Best Burger” to all markets by 2026, impacting favourites like the Big Mac, McDouble burger, cheeseburger, double cheeseburger, and hamburger. Additionally, McDonald’s aims to elevate its chicken business, making the McCrispy sandwich available in all markets by the end of 2025 and expanding it into wraps and tenders.  

In the last quarter, McDonald’s witnessed a boost in U.S. sales attributed to higher menu prices, innovative marketing campaigns such as the “As Featured In Meal”, and the growing adoption of digital and delivery orders. 

The company, having actively participated in the chicken sandwich wars three years ago, reported gaining market share in both chicken and beef during a call with investors following its Q3 results. The strategic focus on burgers and chicken aligns with McDonald’s ongoing commitment towards meeting evolving consumer preferences.

Digital transformation remains at the forefront of McDonald’s agenda, with systemwide digital sales reaching $9 billion in Q3 across its six largest markets. This accounted for 40 per cent of total sales, marking a notable increase from Q2. McDonald’s plans to continue investing in digital, delivery, and drive-throughs, with a keen eye on expanding its loyalty program. By 2027, the company aims to grow its active loyalty user base from 150 million to a 250 million 90-day active users, with an ambitious target of reeling in $45 billion in annual systemwide sales.  

In a strategic move, McDonald’s has partnered with Google Cloud to enhance operations, customer experience, and crew efficiency. This collaboration, set to commence in 2024, will leverage generative AI at McDonald’s restaurants to accelerate innovation, reduce complexity, and ensure accurate orders. Google CEO Sundar Pichai expressed eagerness about the collaboration, highlighting the potential for McDonald’s to leverage Google’s generative AI, cloud, and edge computing tools to enhance the dining experience globally.  

The announcement comes after McDonald’s sold its automated ordering business, McD Tech Labs, to IBM in 2021. Competitor Wendy’s has also ventured into automation, revealing plans to automate its drive-through with Google Cloud, known as Wendy’s FreshAI.

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