McDonald's sets a small goal: By 2027, the total number of stores will reach 50,000, with an additional 100 million members.

McDonald's announced on Wednesday that it plans to open over 8,800 new stores by the end of 2027, aiming to achieve a total of 50,000 stores worldwide. The company also aims to increase its membership by 100 million and will collaborate with Google Cloud to improve operations through AI technology. McDonald's announced this new plan ahead of its Investor Day on Wednesday, in an effort to convince investors that the demand for its fast food products is still growing, despite concerns on Wall Street about the macroeconomic downturn and the popularity of weight loss drugs posing a threat to McDonald's business. McDonald's expects to release more details of this plan in the future, including how to attract more customers. The company may gradually introduce improved versions of hamburgers and also focus on developing chicken products. For 2024, McDonald's currently expects a net addition of 4% of stores, which, in terms of fixed currency, will contribute nearly 2% to annual revenue growth. After 2024, McDonald's plans to add 4% to 5% of net new stores each year, which will contribute 2.5% to revenue growth. However, this large-scale expansion plan also means higher capital expenditure. For 2024, McDonald's expects its capital expenditure to reach $2.5 billion, an increase from the expected $2.2 billion to $2.4 billion in 2023. From 2025 to 2027, McDonald's expects annual capital expenditure to increase by $300 million to $500 million. By the end of 2027, McDonald's hopes to have 50,000 stores worldwide. As of September 30th this year, McDonald's had 41,198 stores globally, and the company had previously promised to add 2,000 stores by the end of this year. In comparison, Starbucks announced in November that it plans to increase its global store count from the current 38,000 to 55,000 by 2030. It is reported that most of McDonald's new stores will be located in the United States, France, and Australia. Senior executives of the company have previously stated that McDonald's current store locations are outdated and do not reflect consumer mobility, as the US population has begun to move to the south and southeast. In addition to expanding its stores, McDonald's also plans to increase its membership by over 100 million by 2027, with a total membership of 250 million, aiming to increase its membership revenue from the current $20 billion to $45 billion. McDonald's was still testing its membership system during its 2020 Investor Day, but since then, the number of members has increased dramatically, driving a significant increase in mobile revenue and encouraging more frequent purchases by customers. McDonald's also announced a collaboration with Google Cloud, a subsidiary of Alphabet, to improve store operations using artificial intelligence technology. Google CEO Sundar Pichai stated, "We are excited to see how McDonald's will use our generative AI, cloud technology, and the latest computing tools to improve the dining experience for its global employees and customers." McDonald's stock price fell 0.56% during Wednesday's trading session on the US stock market, closing at $298.94. The stock has gained 7.8% year-to-date.