McDonald’s provides 2024 and long-term outlook and targets

McDonald’s announced new growth targets to advance its Accelerating the Arches strategy. The company plans to increase its active loyalty user base to 250 million 90-day active users and deliver $45B in annual Systemwide sales to loyalty members by 2027. The company will expand its U.S. pilot of Ready On Arrival across its top six markets by 2025. Expects 30% of delivery orders to originate in its mobile app by 2027. TargetS expansion to 50,000 restaurants by the end of 2027. This will mark the fastest period of growth in Company history, with an expected run rate of 1,000 gross openings across the U.S. and International Operated Markets in 2027. McDonald’s and Google Cloud announced a strategic partnership to connect the latest cloud technology and apply generative AI solutions across its restaurants worldwide. Beginning in 2024, the company will begin to deploy new, universal software that all McDonald’s customer and restaurant digital platforms will run on – from the mobile app to loyalty and kiosks in store. The company expects a net restaurant unit expansion of nearly 2% of systemwide sales growth in constant currencies in 2024, and about 2.5% of systemwide sales growth in constant currencies in the average long-term beyond 2024. Expects operating margin in 2024 to be in the mid-to-high 40% range with continued expansion in the long term. Sees 2024 CapEx of $2.5B with sequential increases of about $300M-$500M each year through 2027.