(MENAFN- The Peninsula) Bloomberg
McDonald's Corp. is looking to hit 50,000 locations around the world by 2027 in what the company calls the fastest expansion spurt in its history.
The chain currently has more than 41,000 restaurants and already committed to opening an extra 2,000 by the end of this year. The new target highlights the burger giant's stepped-up ambitions as it looks for its next leg of growth.
New restaurant openings will boost systemwide sales by 2% next year and by 2.5% after 2024, McDonald's said Wednesday in a statement ahead of a presentation to investors.
Systemwide sales are those generated by all McDonald's restaurants, from company-operated to franchised locations.
The expanded footprint is part of a multiyear growth plan that includes a renewed focus on marketing, core menu offerings such as hamburgers, and digital channels including delivery, the mobile app and kiosks.
McDonald's is also looking to increase users of its loyalty program to 250 million 90-day active customers by 2027, from about 150 million currently.
It's targeting an additional $25 billion in systemwide sales from loyalty-program users over the same period, up from $20 billion today.
McDonald's expects operating margins in the mid-to-high 40% range in 2024, which is similar to the last two quarters, and continued expansion in subsequent years.
It's forecasting capital expenditures of $2.5 billion next year, and sequential increases of about $300 million to $500 million each year through 2027.
The chain has held up in the face of pressured consumer budgets in recent months, beating expectations on sales and profits in the third quarter.
Still, US customer traffic dipped for the first time this year in the period. The shares have risen 8.7% this year through Tuesday's close.
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.