Feb. 11, Yicai — McDonald’s is set to open 2,200 new restaurants globally this year, with approximately 1,000 of those in China, as part of its strategy to recover from disappointing results in 2024.
The American fast-food giant reported a 2% increase in revenue last year, reaching USD 25.9 billion. However, its net profit fell by 3%, totaling USD 8.2 billion, according to the company’s earnings report released yesterday.
Looking ahead, McDonald’s aims to expand its presence globally, targeting 50,000 restaurants by 2027, a 15% increase from the end of 2024. Last year, the chain grew its restaurant count by 4%.
Despite facing inflation and pricing challenges, McDonald’s is optimistic about boosting profits this year. The company expects to exceed the 46.3% adjusted operating margin achieved in 2024.
“Our performance in 2024 did not meet our expectations,” said Chris Kempczinski, McDonald’s Chairman and CEO, during a conference call. He added that the company anticipates a recovery in the coming quarters.
In the fourth quarter of 2024, McDonald’s saw declines in both revenue and net profit. Revenue dropped by 0.3% year-over-year to USD 6.4 billion, while net profit decreased by 1% to USD 2 billion. However, global same-store sales rose by 0.4%, with the U.S. market experiencing a 1% decline. Strongest growth came from international developmental licensed (IDL) markets like China, Indonesia, Saudi Arabia, and Brazil, which saw a 4% increase.
CFO Ian Borden noted that the sales growth in IDL markets was largely driven by strong results in the Middle East and Japan. He also highlighted positive signs of stabilization in China, a key market for McDonald’s.
To strengthen its position in China, McDonald’s is accelerating the opening of new restaurants and launching more affordable products. Last December, the company held its first “Fans Conference” in Shenzhen, introducing the McValue meal, which targets young consumers seeking budget-friendly options. McDonald’s plans to launch four major value initiatives this year, including the Buy One, Add One offer and Big Bite Meals.
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