McDonald’s to open 1,900 new stores in 2023; eyes big growth in China
McDonald’s Corp. reported a strong fourth quarter amid higher menu prices and a big bump in comp sales in its home market.
On its quarterly earnings call, the fast-food restaurant giant said plans to open 1,900 new locations in 2023. More than 900 of the new units will be in China, and 400 of the new units will be in the United States and in McDonald’s internationally operated markets, which include Germany, Canada, France, Australia, Canada and the United Kingdom. (The remaining will be in other development licensee and subsidiary markets.)
The company reported net income of $1.9 billion, or $2.59 per share, for the quarter ended Dec. 31, up from $1.64 billion, or $2.18 per share, in the year-ago period. Net sales fell 1% to $5.93 billion, but increased 5% in constant currencies.
Total same-store sales rose 12.6%, fueled by a 10% rise in the U.S. and 12.6% rise in European markets.
McDonald’s is planning to spend between $2.2 billion and $2.4 billion on capital expenditures this year. About half of the funds will be earmarked for new restaurant development in the U.S. and its international operated markets.
In January, the company announced that it planned to accelerate its new restaurant development as part of its new “Accelerating the Arches” strategy. As part of the strategy, the company also is doubling down on delivery, digital and drive-thru. McDonald’s expects digital sales to exceed $10 billion or nearly 20% of systemwide sales across its top six markets in 2020.
“While we expect short-term inflationary pressures to continue in 2023, we remain highly confident in Accelerating the Arches, which now includes a greater emphasis on new restaurant openings,” stated McDonald's president and CEO Chris Kempczinsk. “The recently announced Accelerating the Organization initiative will complement this strategy to enable the McDonald's System to be faster, more innovative, and more efficient.”
McDonald's is the world's leading global foodservice retailer with over 40,000 locations in over 100 countries.