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.
I view something truly special in this website .
I rattling pleased to find this site on bing, just what I was searching for : D likewise saved to bookmarks.
Very interesting information!Perfect just what I was searching for!
Thanks, I’ve just been looking for information approximately this topic for ages and yours is the greatest I have came upon so far. However, what concerning the conclusion? Are you sure about the source?
Good web site! I really love how it is simple on my eyes and the data are well written. I’m wondering how I might be notified whenever a new post has been made. I have subscribed to your feed which must do the trick! Have a great day!
Thank you for sharing superb informations. Your website is very cool. I am impressed by the details that you¦ve on this blog. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for more articles. You, my friend, ROCK! I found simply the information I already searched everywhere and just could not come across. What a perfect site.
Well I truly liked studying it. This tip offered by you is very effective for correct planning.
Hi, i read your blog from time to time and i own a similar one and i was just wondering if you get a lot of spam feedback? If so how do you stop it, any plugin or anything you can advise? I get so much lately it’s driving me crazy so any assistance is very much appreciated.
I like this web site very much, Its a rattling nice berth to read and receive information.
Hello there! I know this is kinda off topic but I was wondering which blog platform are you using for this website? I’m getting sick and tired of WordPress because I’ve had issues with hackers and I’m looking at alternatives for another platform. I would be great if you could point me in the direction of a good platform.
Super-Duper blog! I am loving it!! Will be back later to read some more. I am taking your feeds also
Hi there, I discovered your web site by the use of Google at the same time as searching for a comparable topic, your web site came up, it appears good. I have bookmarked it in my google bookmarks.
Someone essentially help to make seriously articles I would state. This is the first time I frequented your website page and thus far? I amazed with the research you made to make this particular publish extraordinary. Excellent job!
Thank you for some other fantastic post. The place else may just anybody get that type of information in such a perfect way of writing? I have a presentation subsequent week, and I’m at the search for such information.
I have been exploring for a bit for any high quality articles or blog posts in this sort of house . Exploring in Yahoo I finally stumbled upon this web site. Reading this info So i am satisfied to show that I’ve an incredibly good uncanny feeling I found out just what I needed. I so much undoubtedly will make sure to do not disregard this site and provides it a glance on a constant basis.
I gotta bookmark this web site it seems extremely helpful very helpful
Woh I love your posts, bookmarked! .
Spot on with this write-up, I really think this web site wants much more consideration. I’ll probably be again to read far more, thanks for that info.
I really like your writing style, fantastic information, regards for posting :D. “In every affair consider what precedes and what follows, and then undertake it.” by Epictetus.
There is noticeably a bundle to know about this. I assume you made sure nice factors in options also.
You are my breathing in, I have few web logs and infrequently run out from to brand : (.
I like what you guys are up also. Such intelligent work and reporting! Keep up the excellent works guys I have incorporated you guys to my blogroll. I think it’ll improve the value of my site 🙂
Howdy! This is my first comment here so I just wanted to give a quick shout out and tell you I really enjoy reading through your blog posts. Can you suggest any other blogs/websites/forums that deal with the same topics? Thanks a ton!
I like this site its a master peace ! Glad I found this on google .
Some genuinely wonderful blog posts on this internet site, thank you for contribution. “When he has ceased to hear the many, he may discern the One – the inner sound which kills the outer.” by H Hahn Blavatsky.
This really answered my problem, thank you!
Merely a smiling visitor here to share the love (:, btw outstanding style.
I was just searching for this information for some time. After 6 hours of continuous Googleing, finally I got it in your website. I wonder what’s the lack of Google strategy that do not rank this kind of informative web sites in top of the list. Usually the top sites are full of garbage.
I’m not sure exactly why but this blog is loading very slow for me. Is anyone else having this problem or is it a issue on my end? I’ll check back later on and see if the problem still exists.
The Pink Salt Trick is a minimalist but effective morning routine: Just drink a glass of lukewarm water mixed with a pinch of Himalayan pink salt as soon as you wake up.
Regards for this wonderful post, I am glad I found this web site on yahoo.
Great wordpress blog here.. It’s hard to find quality writing like yours these days. I really appreciate people like you! take care
I absolutely love your blog and find most of your post’s to be what precisely I’m looking for. Would you offer guest writers to write content for you? I wouldn’t mind composing a post or elaborating on some of the subjects you write regarding here. Again, awesome blog!
Good write-up, I’m regular visitor of one’s web site, maintain up the excellent operate, and It’s going to be a regular visitor for a long time.
The Pink Salt Trick is a minimalist but effective morning routine: Just drink a glass of lukewarm water mixed with a pinch of Himalayan pink salt as soon as you wake up.
Sleep Lean is a natural nighttime weight management supplement designed to help you burn fat, improve sleep quality, and balance hormones—all while you rest.
Many men who have tried the blue salt trick report increased stamina, better performance, and a renewed sense of confidence.
An impressive share, I just given this onto a colleague who was doing a little analysis on this. And he in fact bought me breakfast because I found it for him.. smile. So let me reword that: Thnx for the treat! But yeah Thnkx for spending the time to discuss this, I feel strongly about it and love reading more on this topic. If possible, as you become expertise, would you mind updating your blog with more details? It is highly helpful for me. Big thumb up for this blog post!
Saved as a favorite, I really like your blog!
The ice water hack is a simple trick that involves using cold water to naturally activate your body’s thermogenic process. When you drink ice water, your body has to work harder to regulate its temperature, burning extra calories in the process.
I’m usually to running a blog and i really respect your content. The article has really peaks my interest. I’m going to bookmark your web site and maintain checking for brand new information.
PROSTADINE is truly unlike anything you’ve ever encountered in your life. It stands as the sole droplet solution that incorporates nine potent natural ingredients, working in perfect synergy to safeguard the health and mineral balance of your prostate well into your golden years.
This is a topic close to my heart cheers, where are your contact details though?
This internet site is my aspiration, real great layout and perfect subject material.
Tired of Tinnitus or Hearing Problems? Here’s a Natural Solution That’s Changing Lives Are you constantly bothered by ringing in the ears (tinnitus), hearing difficulties, or sound clarity issues?
Very interesting topic, regards for posting.
Good write-up, I am regular visitor of one’s blog, maintain up the nice operate, and It’s going to be a regular visitor for a long time.
I am glad to be a visitor of this everlasting weblog! , appreciate it for this rare information! .
Good article and straight to the point. I am not sure if this is truly the best place to ask but do you people have any thoughts on where to employ some professional writers? Thank you 🙂
I really appreciate this post. I?¦ve been looking all over for this! Thank goodness I found it on Bing. You have made my day! Thank you again