In a strategic business move to tap into the afternoon beverage market, McDonald’s Corp. (NYSE:MCD), the quick service restaurant chain, has announced a new drink-focused chain called CosMc’s. The first CosMc’s will open in Bolingbrook, Illinois, this month “with a handful of additional outposts planned in the coming months.” By the end of next year, McDonald’s plans to open 10 such outlets across the Dallas-Fort Worth and San Antonio metro areas in Texas.
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CosMc’s will offer customizable drinks and snacks, competing with chains like Starbucks (SBUX) and Dunkin’ Donuts. CosMc’s is named after a 1980s McDonaldland character that is part alien, part surfer, and part robot.
Meanwhile, the company unveiled ambitious growth targets on its Investor Day. It aims to ramp up its capital expenditure through 2027 as it accelerates its new restaurant openings. McDonald’s also seeks to add 100 million members to its loyalty program to grow its global sales.
In 2024, McDonald’s aims to boost its restaurant count by 4%. After that, it wants to increase its restaurants globally at a rate of 4% to 5% annually. By 2027, the company is targeting a global footprint of 50,000 locations.
In order to achieve these ambitious growth targets, McDonald’s anticipates $2.5 billion in capital expenditures in 2024 and expects to increase its capital expenditures by $300 million to $500 million sequentially from 2025 through 2027.
Is MCD a Buy Today?
Analysts remain bullish about MCD stock with a Strong Buy consensus rating based on 23 Buys and five Holds. Year-to-date, MCD stock has increased by more than 10%, and the average MCD price target of $314.85 implies an upside potential of 9.8% at current levels.
