McDonald’s Opens 2,200 New Restaurants in 2025 “Slughing Start”, CEO Hits Snack Packages Back – McDonald’s (NYSE: MCD)

McDonald’s MCD Despite an announcement of a “slow start” for 2025 announced on Monday’s fourth-quarter revenue call, it remains on the global growth bet. As fast-food restaurant giants work hard to recover from recent challenges including the E. coli outbreak, 2,200 new restaurants are planned to open this year.

what happened: The expansion drive is the continued pressure on McDonald’s face as prices rise in menus and demand continue to be under pressure, especially among low-income customers who have “reduced double-digit” in recent months. Chris Kempczinski.

Recent financial results reflect these pressures, with sales in the fourth quarter down 0.3% year-on-year to $6.39 billion, and analysts estimate it to $6.44 billion.

“Obviously, our performance in 2024 is not in line with our expectations,” Kempczinski admitted on the company’s earnings call. CFO Ian Borden It pointed out that the first quarter of 2025 could be the company’s “low quarter” as it struggles to cope with the decline in traffic across the industry and the lingering impact of the 2024 food safety incident.

The company is also preparing to bring back fans’ favorite snack packaging and launch new chicken strips later this year, although executives are still firmly driving on specific occasions. “If I provide more details, my American team would kill me,” Kempzinski joked.

See also: Traders rethink paths to exploit interest rates, as inflation involves recovery: “The Fed’s cut cycle is over,” said economists

Why it matters: The chain is using aggressive value strategies to fight back, including new meal packs and promotions. Early results show that Promise – the average check for a $5 meal deal is above $10 as customers add other items to their orders.

Of the 2,200 new locations planned, approximately 1,000 will be in China, the rest between the United States, other international markets and development holders. The expansion is part of a strategy for the fast-food restaurant giant to reach 50,000 locations by 2027.

Price action: McDonald’s shares surged 4.80% on Monday to close at $308.42 and closed at $14.12. According to Benzinga Pro, the stock fell 0.21% in after-hours trading.

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Disclaimer: The content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.