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’d have to examine with you here. Which is not one thing I usually do! I take pleasure in reading a post that may make folks think. Additionally, thanks for permitting me to comment!
Today, I went to the beach front with my children. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is entirely off topic but I had to tell someone!
I was curious if you ever considered changing the page layout of your blog?
Its very well written; I love what youve got to say. But maybe
you could a little more in the way of content so people could connect with it better.
Youve got an awful lot of text for only having one or 2 images.
Maybe you could space it out better?
Very wonderful info can be found on web site.
This web site is really a walk-through for all of the info you wanted about this and didn’t know who to ask. Glimpse here, and you’ll definitely discover it.
A person essentially help to make seriously articles I would state. This is the first time I frequented your web page and thus far? I amazed with the research you made to make this particular publish incredible. Great job!
I was studying some of your blog posts on this internet site and I believe this internet site is really instructive! Continue posting.
Greetings! This is my first visit to your blog! We are a group of volunteers and starting a new project in a community in the same niche. Your blog provided us useful information to work on. You have done a marvellous job!
Whats up very nice web site!! Man .. Beautiful .. Wonderful .. I’ll bookmark your site and take the feeds additionallyKI am happy to find numerous useful information here in the publish, we’d like work out extra techniques on this regard, thanks for sharing. . . . . .
whoah this weblog is fantastic i really like studying
your articles. Keep up the great work! You already
know, a lot of individuals are looking around for this info, you
could help them greatly.
Lovely just what I was searching for.Thanks to the author for taking his clock time on this one.
I have been exploring for a bit for any high-quality articles or weblog posts in this kind of space . Exploring in Yahoo I ultimately stumbled upon this web site. Reading this information So i?¦m glad to convey that I have a very just right uncanny feeling I came upon exactly what I needed. I most definitely will make sure to do not put out of your mind this web site and give it a glance on a constant basis.
You are my breathing in, I have few blogs and very sporadically run out from to brand.
It¦s actually a cool and useful piece of information. I am satisfied that you just shared this helpful info with us. Please stay us up to date like this. Thanks for sharing.
Write more, thats all I have to say. Literally, it seems as
though you relied on the video to make your point.
You clearly know what youre talking about, why waste your intelligence
on just posting videos to your site when you could be giving us something enlightening to read?
As soon as I discovered this site I went on reddit to share some of the love with them.
I was suggested this website through my cousin. I am not sure whether or not this publish is written by means of him as nobody else know such precise approximately my trouble. You’re incredible! Thanks!
I got what you mean , thanks for posting.Woh I am lucky to find this website through google.
I love it when people come together and share opinions, great blog, keep it up.
Very interesting points you have remarked, appreciate it for posting. “Ignorance, the root and the stem of every evil.” by Plato.
I know this if off topic but I’m looking into starting my own weblog and was wondering what all is needed to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web savvy so I’m not 100 positive. Any recommendations or advice would be greatly appreciated. Thanks
Thanks – Enjoyed this blog post, can you make it so I receive an email whenever you publish a fresh post?
Greetings! Quick question that’s totally off topic. Do you know how to make your site mobile friendly? My website looks weird when viewing from my iphone4. I’m trying to find a template or plugin that might be able to resolve this problem. If you have any recommendations, please share. Thank you!
I think other site proprietors should take this web site as an model, very clean and excellent user friendly style and design, as well as the content. You’re an expert in this topic!
I’m not sure why but this blog is loading extremely slow for me. Is anyone else having this issue or is it a issue on my end? I’ll check back later and see if the problem still exists.
Wow, marvelous blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your website is wonderful, as well as the content!
You actually make it appear really easy with your presentation however I in finding this matter to be really one thing which I believe I’d never understand. It kind of feels too complex and extremely extensive for me. I’m taking a look ahead for your next submit, I will attempt to get the hang of it!
Everything is very open and very clear explanation of issues. was truly information. Your website is very useful. Thanks for sharing.
Wonderful web site. Lots of useful information here. I?¦m sending it to a few buddies ans also sharing in delicious. And of course, thank you on your effort!
I do consider all of the ideas you have introduced to your post. They are really convincing and can definitely work. Nonetheless, the posts are very brief for starters. Could you please prolong them a bit from next time? Thank you for the post.
Hello my friend! I wish to say that this post is amazing, great written and include approximately all vital infos. I would like to look more posts like this.
Some really excellent blog posts on this website , thanks for contribution.
This is the right blog for anyone who wants to find out about this topic. You realize so much its almost hard to argue with you (not that I actually would want…HaHa). You definitely put a new spin on a topic thats been written about for years. Great stuff, just great!
I am glad that I detected this web site, precisely the right info that I was looking for! .
hey there and thanks for your info – I’ve certainly picked up anything new from proper here. I did however experience several technical issues the usage of this website, since I skilled to reload the website a lot of occasions previous to I could get it to load correctly. I have been wondering in case your web host is OK? No longer that I am complaining, however slow loading instances times will often affect your placement in google and can damage your high quality ranking if ads and ***********|advertising|advertising|advertising and *********** with Adwords. Anyway I’m adding this RSS to my email and could look out for a lot extra of your respective interesting content. Make sure you update this again soon..
I love your writing style truly enjoying this internet site.
Hello, i think that i saw you visited my weblog thus i came to “return the favor”.I’m trying to find things to enhance my site!I suppose its ok to use a few of your ideas!!
fantastic issues altogether, you simply won a new reader. What may you suggest about your put up that you made a few days in the past? Any positive?
Hey there! Do you know if they make any plugins to assist with SEO? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good success. If you know of any please share. Kudos!
You made a number of fine points there. I did a search on the matter and found the majority of people will go along with with your blog.
Some really nice and utilitarian information on this web site, also I think the style holds excellent features.
Hi there very nice blog!! Man .. Excellent .. Superb .. I’ll bookmark your website and take the feeds additionally?KI’m glad to seek out numerous helpful info here in the post, we want develop extra strategies in this regard, thank you for sharing. . . . . .
Does your website have a contact page? I’m having problems locating it but, I’d like to shoot you an e-mail. I’ve got some recommendations for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it improve over time.
My partner and I absolutely love your blog and find many of
your post’s to be exactly I’m looking for. Does one offer guest writers to write content in your case?
I wouldn’t mind producing a post or elaborating on a number of the
subjects you write regarding here. Again, awesome weblog!