The massively popular international fast food chain is going through yet another massive expansion. This year the company is reportedly primed to open another 1,900 brand new locations.
Over 400 of them will be in the United States, or other Western nations such as Canada, the United Kingdom, France, Germany, Australia, and more. The other 1,500 or so will be in developmental licensee and affiliate markets, including 900 in China.
Yahoo! Finance says that the franchise is poised to spend $2.2 billion to $2.4 billion on capital expenditures, “half of which will be dedicated to new net openings,” Ian Borden, CFO and EVP, said during a call with investors after the company’s Q4 earnings report was released.
Overall, we anticipate over 4% unit growth from about 1,500 net restaurant additions in 2023. We expect this will contribute, along with restaurants opened in 2022, nearly 1.5% to systemwide sales growth.
He said
Yahoo notes that this expansion marks the largest in the U.S. since 2014. However, BTIG Managing Director Peter Saleh believes that these U.S. store openings will be a ‘very small portion’ of the new locations.
The growth in the U.S. is still going to be rather nominal. At best, I think they’re going to open about 100 stores, [then, those] that are closed, maybe another 80 get to about a net number of about 20.
From our conversations with franchisees, they’ve been telling us, ‘Yes … We need more stores, because the volumes in the stores that we have, has grown so much that we need to offset it with with additional units.’
Saleh said, adding that the chain’s growth strategy is welcome news to U.S. franchisee owners, who make up approximately 95% of McDonald’s total portfolio.
Yahoo added that ‘in Q4 2022, U.S. same-store sales were up 10.3%, compared to 7.5% in the same quarter of 2021.’
With global sales up over 12%, CEO Chris Kempczinski believes now is the right time to to vastly expand some more.
“We have to walk and chew gum” when it comes to unit growth and comparable sales growth, Kempczinski said on the call. “It’s not one or the other; it’s the two of them in combination…[when] you want to be growing units is when you got strong comparable sales, because that reflects the underlying health of the business.”
I am always very leery when I see some someone out there putting a strong unit growth number without those strong comparable sales because that’s historically not been a good recipe in our industry.
McDonald’s growth is part of a much larger goal of theirs called the Accelerating the Arches strategic plan – with one of the tenets to “double down” on “restaurant development.”
In December McDonald’s opened a fully-autonomous location, with a robot handling the orders at the window and inside the building.
AUTHOR COMMENTARY
[20] Be not among winebibbers; among riotous eaters of flesh: [21] For the drunkard and the glutton shall come to poverty: and drowsiness shall clothe a man with rags.
Proverbs 23:20-21
What a sign of the times. The American consumer is beyond broke, in massive debt that will never get repaid, and are all but nearly tapped-out yet; yet one of the largest chains is having yet another one of their largest expansions they have had in a while.
But this is what happens when you lockdown an economy, shutdown small businesses and restaurants, but specifically leave McDonalds open. I distinctly remember Trump talking about this during his daily briefings in March of 2020, how everything was going to be basically shutdown but shacks like McDonalds could stay open. And, surprise surprise, McDonald’s sales grew, as did American’s waistlines.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
Awesome site you have here but I was wanting to know if you knew of any message boards that cover the same topics discussed here? I’d really like to be a part of community where I can get feedback from other experienced individuals that share the same interest. If you have any suggestions, please let me know. Thanks a lot!
Those are yours alright! . We at least need to get these people stealing images to start blogging! They probably just did a image search and grabbed them. They look good though!
After study a number of of the blog posts on your web site now, and I actually like your approach of blogging. I bookmarked it to my bookmark website record and will be checking back soon. Pls check out my web page as properly and let me know what you think.
I¦ve recently started a blog, the information you provide on this web site has helped me greatly. Thank you for all of your time & work.
I am impressed with this web site, rattling I am a big fan .
Hello. Great job. I did not anticipate this. This is a splendid story. Thanks!
Sweet internet site, super style and design, real clean and utilise pleasant.
What’s Happening i am new to this, I stumbled upon this I have found It positively useful and it has helped me out loads. I hope to give a contribution & aid other customers like its aided me. Good job.
Have you ever considered about including a little bit more than just your articles? I mean, what you say is fundamental and everything. Nevertheless think about if you added some great images or videos to give your posts more, “pop”! Your content is excellent but with images and videos, this blog could undeniably be one of the very best in its niche. Excellent blog!
I discovered your weblog web site on google and examine a number of of your early posts. Continue to maintain up the superb operate. I just additional up your RSS feed to my MSN Information Reader. Searching for ahead to studying more from you later on!…
I got what you mean , thanks for putting up.Woh I am lucky to find this website through google. “The test and use of a man’s education is that he finds pleasure in the exercise of his mind.” by Carl Barzun.
Having read this I thought it was very informative. I appreciate you taking the time and effort to put this article together. I once again find myself spending way to much time both reading and commenting. But so what, it was still worth it!
I think other web-site proprietors should take this website as an model, very clean and magnificent user friendly style and design, as well as the content. You are an expert in this topic!
Aw, this was a very nice post. In thought I want to put in writing like this moreover – taking time and actual effort to make an excellent article… however what can I say… I procrastinate alot and not at all appear to get something done.
Hi my loved one! I wish to say that this article is awesome, great written and include approximately all vital infos. I’d like to look extra posts like this.
My brother recommended I might like this website. He was totally right. This post actually made my day. You can not imagine just how much time I had spent for this info! Thanks!
I do not even know the way I ended up here, however I believed this publish used to be good. I don’t realize who you might be but certainly you are going to a famous blogger for those who aren’t already 😉 Cheers!
You have observed very interesting points! ps nice web site. “Never take the advice of someone who has not had your kind of trouble.” by Sydney J. Harris.
There are actually quite a lot of particulars like that to take into consideration. That could be a great point to convey up. I offer the ideas above as general inspiration however clearly there are questions just like the one you deliver up the place a very powerful factor will be working in honest good faith. I don?t know if greatest practices have emerged around issues like that, however I’m sure that your job is clearly recognized as a fair game. Each girls and boys feel the impression of only a second’s pleasure, for the rest of their lives.
Some really great articles on this web site, thanks for contribution. “Be absolutely determined to enjoy what you do.” by Sarah Knowles Bolton.
Have you ever thought about adding a little bit more than just your articles? I mean, what you say is valuable and all. However just imagine if you added some great visuals or video clips to give your posts more, “pop”! Your content is excellent but with images and clips, this website could undeniably be one of the best in its field. Excellent blog!
Great work! This is the type of information that should be shared around the net. Shame on the search engines for not positioning this post higher! Come on over and visit my website . Thanks =)
Hi , I do believe this is an excellent blog. I stumbled upon it on Yahoo , i will come back once again. Money and freedom is the best way to change, may you be rich and help other people.
Magnificent web site. Lots of useful information here. I’m sending it to a few friends ans also sharing in delicious. And obviously, thanks for your effort!
I gotta bookmark this web site it seems very useful very beneficial
I have been browsing on-line greater than 3 hours lately, yet I by no means found any interesting article like yours. It is lovely value enough for me. In my view, if all web owners and bloggers made excellent content as you probably did, the net shall be a lot more helpful than ever before.
hello!,I really like your writing so a lot! percentage we keep in touch extra approximately your post on AOL? I require an expert in this space to resolve my problem. May be that is you! Taking a look forward to look you.
Just want to say your article is as astonishing. The clarity in your post is just spectacular and i could assume you are an expert on this subject. Fine with your permission allow me to grab your RSS feed to keep up to date with forthcoming post. Thanks a million and please carry on the enjoyable work.
This is a very good tips especially to those new to blogosphere, brief and accurate information… Thanks for sharing this one. A must read article.
Thanks for your entire hard work on this website. Betty takes pleasure in going through internet research and it is easy to see why. A lot of people hear all regarding the dynamic ways you make very helpful techniques via the website and as well as boost participation from website visitors about this content while our favorite child has always been studying a whole lot. Take pleasure in the remaining portion of the new year. You are performing a tremendous job.
I saw a lot of website but I believe this one has something special in it in it
I believe this website contains some rattling excellent information for everyone :D. “When you get a thing the way you want it, leave it alone.” by Sir Winston Leonard Spenser Churchill.
I like what you guys are usually up too. This type of clever work and reporting! Keep up the amazing works guys I’ve added you guys to my personal blogroll.
Pretty nice post. I just stumbled upon your blog and wanted to say that I have really enjoyed surfing around your blog posts. After all I will be subscribing to your feed and I hope you write again very soon!
I would like to thnkx for the efforts you have put in writing this blog. I am hoping the same high-grade blog post from you in the upcoming as well. In fact your creative writing abilities has inspired me to get my own blog now. Really the blogging is spreading its wings quickly. Your write up is a good example of it.
Hey there! Do you know if they make any plugins to protect against hackers? I’m kinda paranoid about losing everything I’ve worked hard on. Any suggestions?
I don’t even know how I finished up here, but I assumed this post was great. I do not realize who you are however definitely you are going to a famous blogger for those who are not already 😉 Cheers!
You got a very fantastic website, Sword lily I discovered it through yahoo.
WONDERFUL Post.thanks for share..more wait .. …
Your place is valueble for me. Thanks!…
Hi, I think your site might be having browser compatibility issues. When I look at your website in Safari, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, fantastic blog!
You are a very bright individual!
Good – I should definitely pronounce, impressed with your web site. I had no trouble navigating through all the tabs as well as related information ended up being truly easy to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your client to communicate. Nice task.
Throughout the grand pattern of things you secure a B- for effort. Where exactly you lost me was on the particulars. As it is said, the devil is in the details… And that couldn’t be more correct at this point. Having said that, permit me tell you exactly what did work. The writing is certainly extremely persuasive which is possibly why I am making an effort in order to comment. I do not make it a regular habit of doing that. 2nd, although I can certainly see the leaps in logic you come up with, I am not confident of just how you seem to unite the points which make your conclusion. For now I shall yield to your issue but trust in the near future you actually connect your facts better.
I have been absent for a while, but now I remember why I used to love this web site. Thank you, I will try and check back more often. How frequently you update your website?
Pretty! This was a really wonderful post. Thank you for your provided information.
It is really a great and useful piece of information. I’m glad that you shared this helpful information with us. Please keep us informed like this. Thanks for sharing.
Yesterday, while I was at work, my cousin stole my iphone and tested to see if it can survive a 40 foot drop, just so she can be a youtube sensation. My iPad is now broken and she has 83 views. I know this is entirely off topic but I had to share it with someone!
I like the efforts you have put in this, regards for all the great articles.
Magnificent website. Plenty of useful info here. I’m sending it to several friends ans also sharing in delicious. And naturally, thanks for your sweat!