McDonald’s on Monday unveiled its latest global growth strategy to help the fast-food giant become customers’ first choice as it faces new rivals and consumer spending stretched by high gas prices.

A new restaurant design, better tasting food and drinks, consumer-led innovation and improved customer service are the four cornerstones of the new plan, which the company calls “McDonald’s NEXT.”

Executives made the announcement at McDonald’s biennial Worldwide Convention for franchisees, held this year in Las Vegas. The chain released its last global strategy, known as “Accelerating the Arches,” in November 2020 as its sales bounced back from the pandemic.

The growth plan comes as restaurants compete for a smaller pool of customers, and a new crop of chains, like Raising Cane’s and 7 Brew Drive Thru Coffee, threaten McDonald’s sales. So far, McDonald’s, the largest U.S. restaurant chain by revenue, has managed to hold onto its dominant spot, with four straight quarters of same-store sales growth.

“Traditional competitors are upgrading their menus, and a new wave of specialists are emerging and redefining taste and quality across chicken, beef, and beverages,” McDonald’s CEO Chris Kempczinski wrote in a memo to the chain’s global system.

“In a world where every restaurant is a swipe away, there is no such thing as second place,” he added.

To become diners’ first option, McDonald’s plans to focus on menu innovation that elevates taste and quality, like improvements to its McCrispy chicken line. For years, the chain has sought to improve and expand its chicken offerings as rivals like Chick-fil-A stole its customers. Plus, Americans have been eating more chicken than beef for the last 16 years, due to health concerns tied to red meat consumption and higher beef prices, according to U.S. Department of Agriculture data.

“We’re raising the bar for our menu by improving quality and consistency at scale and innovating in spaces where we see growth potential and know matter to our customers, like chicken, beef and beverages,” said Jill McDonald, the chain’s global chief restaurant experience officer.

The chain also wants to “co-create” with customers, by listening more closely to what consumers want and how they interact with brands. Recent examples include the popularity of its viral Grimace milkshake and its collaboration with “A Minecraft Movie.”

The new restaurant design will give McDonald’s a recognizable look, but it should also ease employee headaches and improve kitchen operations. The company said back-end systems will be more intuitive and connected, for example.

McDonald’s is also testing automated order taking at five U.S. restaurants using a system it named ARCHY to let employees focus on other tasks. More broadly, the chain also said it wants to “redefine hospitality” by improving customer service and training employees to interact more…

Even as numerous international consumer brands shrink their footprints in China, McDonald’s is bucking the trend thanks to consumers like Yue Ma.

Over the May Day holidays, Yue showed up at the U.S. fast food giant’s newly opened McDonaldland store in Beijing’s Chaoyang Park — one of the few stores countrywide that reintroduced the chain’s classic strawberry and vanilla milkshakes on May 1.

The businessman, who was born in the 1980s, told CNBC he came not only for the shake, but also the childhood memories.

“McDonald’s left a great first impression for those eating Western fast food for the first time,” he said. “Nowadays we have so many options in fast food, Western or Chinese, but for me, 70% of the time, I go to McDonald’s.”

 While brands like Starbucks, Nike, and LVMH struggle in the country, McDonald’s is supersizing its presence. The chain plans to have 10,000 stores in mainland China by 2028, from over 7,700 at the end of 2025. Only the U.S. has more McDonald’s stores than China.

The market is a big source of the company’s unit growth. Half of its new stores last year were in mainland China.

The China business is part of what the U.S. company calls its international developmental licensed markets segment, where same-store sales rose 3.4% in the first quarter, McDonald’s reported Thursday. A majority, or 52%, of McDonald’s China business is owned by Chinese investor Trustar, a private equity unit of Citic Capital.

 The McDonald’s brand benefits from nostalgia in China. The country’s first McDonald’s opened in 1990, and the iconic golden arches captured the excitement of China’s opening to the world and rising wealth.

Last summer, when McDonald’s brought back the classic shake for a limited period, it went viral. The company announced this year that the milkshake — in vanilla and strawberry flavors — would be made available again at only 44 stores in 15 cities, including Beijing, starting in May. The shake had been discontinued in China in 2014.

 “I remember having this shake the first time as a kid,” Zhu Ming told CNBC after picking up his vanilla shake at the Chaoyang Park store with his girlfriend. “We drove half an hour here to get it.”

 And now McDonald’s is riding the new spirit of the times — affordability in a down economy.

 Foreign brands, once predominantly viewed as superior quality to local businesses, have in recent years suffered as homegrown brands improved and Chinese consumers turned to local labels due to both nationalism and lower prices.

Yet McDonald’s has maintained its reputation for international standards in food quality and consistency while managing to compete on price.

McDonald’s has its own version of what the Chinese call “the poor man’s meal.”  The one-plus-one combo can get a customer a burger with a drink or a dessert for as…

McDonald’s on Wednesday reported quarterly earnings and revenue that topped analysts’ expectations as its value push wins back customers.

“By listening to customers and taking action, we have improved traffic and strengthened our value & affordability scores,” CEO Chris Kempczinski said in a statement.

Shares of McDonald’s rose 2% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $3.12 adjusted vs. $3.05 expected
• Revenue: $7 billion vs. $6.84 billion expected

The fast-food giant reported fourth-quarter net income of $2.16 billion, or $3.03 per share, up from $2.02 billion, or $2.80 per share, a year earlier.

Excluding restructuring charges and other items, McDonald’s earned $3.12 per share.

Net revenue climbed 10% to $7 billion.

The company’s same-store sales increased 5.7%, fueled by strong growth in its home market. Wall Street was projecting same-store sales growth of 3.9%, according to StreetAccount estimates.

U.S. same-store sales increased 6.8%. In the year-ago period, its domestic same-store sales shrank 1.4% after an E. coli outbreak weeks into the quarter weighed on traffic. McDonald’s credited buzzy promotions — like its Grinch meal and Monopoly — that boosted both traffic and sales this year. The chain also expanded its value offerings by relaunching Extra Value Meals, which offer a roughly 15% discount on combo meals.

Outside the U.S., McDonald’s saw same-store sales growth in nearly all markets. The company’s international operated markets segment, which includes Germany and Australia, reported same-store sales growth of 5.2%. Its international developmental licensed markets division saw same-store sales rise 4.5%.

“Value” was the buzzword du jour for restaurant executives that lasted all year — and it will likely stick around in 2026, too.

Over the last year and a half, diners, particularly those who make less than $40,000 a year, have been eating out less frequently and spending less money when they do. Higher costs, like rent and child care, have put pressure on consumers’ wallets. Plus, uncertainty about the economy, President Donald Trump’s higher tariffs, layoff fears and immigration crackdowns have all hurt their willingness to spend.

As diners strain under pressures on their wallets, restaurants, takeout and food delivery is the category where discretionary spending is most likely to fall, according to the EY-Parthenon U.S. Consumer Sentiment Survey. Nearly a quarter of respondents said that they would first cut spending on eating out, ahead of entertainment, travel and home maintenance.

It’s no surprise, then, that data from Black Box Intelligence shows that traffic to restaurants open at least a year fell every month this year through November, with one exception: July. That month, guest count ticked up 0.1%.

To win back a shrinking pool of diners, restaurants have responded by doubling down on efforts to offer diners more “value.” In the fast-food segment, that means combo meals and value menus.

For casual-dining chains, value has translated into appetizer deals, marketing that compares the narrowing price gap with fast food, and a focus on the in-restaurant experience. And fast-casual chains have responded by emphasizing their quality while trying to stay away from the so-called value wars.

“This is the most intense discount environment since the Great Recession,” Cava co-founder and CEO Brett Schulman said on the company’s earnings conference call in November.

To understand the industry’s evolving value strategy, look no further than McDonald’s, the largest U.S. restaurant chain by sales and often a bellwether for the consumer economy.

The burger giant briefly became the poster child for higher fast-food prices in 2024, leading the company to make a rare public rebuttal against social media posts claiming that its prices had more than doubled since 2019. But that didn’t stop consumers from viewing its prices as too high, which put the company on the defensive. In 2024, it launched a $5 value meal in the U.S. in a bid to attract the low-income consumers who had been cutting back on their visits.

As the value gap closed between casual-dining chains like Chili’s and fast-food restaurants, McDonald’s and its peers haven’t benefitted from the spending pullback the way they typically would when consumer spending falls, according to Moody’s analyst Michael Zuccaro.

This year, McDonald’s further stepped up its emphasis on value. It extended the $5 value meal months longer than expected and added a buy one, get one for $1 deal for select…

McDonald’s on Wednesday fell short of Wall Street’s earnings expectations, but the company’s U.S. restaurants reported better-than-expected same-store sales growth.

CEO Chris Kempczinski said in a statement that the results are “a testament to our ability to deliver sustainable growth even in a challenging environment.”

For more than a year, McDonald’s, long considered a bellwether for the financial health of consumers, has been sounding the alarm about a pullback in restaurant spending, particularly from low-income diners. That downturn continued during the third quarter.

“We continue to see a bifurcated consumer base with [quick-service restaurant] traffic from lower income consumers declining nearly double digits in the third quarter, a trend that’s persisted for nearly two years,” Kempczinski said on the company’s conference call. “In contrast, QSR traffic growth among higher income consumers remains strong, increasing nearly double digits in the quarter.”

He added that McDonald’s is projecting that the pressure on consumers’ financial health will continue well into 2026.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $3.22 adjusted vs. $3.33 expected
• Revenue: $7.08 billion vs. $7.1 billion expected

The fast-food giant reported third-quarter net income of $2.28 billion, or $3.18 per share, up from $2.26 billion, or $3.13 per share, a year earlier. McDonald’s saw a higher effective tax rate during the quarter, which weighed on its earnings.

Excluding restructuring charges and other items, the burger chain earned $3.22 per share.

Revenue rose 3% to $7.08 billion.

The company’s same-store sales increased 3.6%, a reversal from the year-ago period’s decline of 1.5% and roughly in line with Wall Street’s expectations, according to StreetAccount.

In the United States, McDonald’s same-store sales increased 2.4%, topping StreetAccount estimates of 1.9%. The company credited growth in average check, suggesting that diners are paying more for their meals despite the ongoing “value wars” between fast-food chains.

In an appeal to budget-conscious consumers, McDonald’s brought back its Snack Wraps for the first time in nine years and priced them at $2.99. CFO Ian Borden said it was one of the most popular chicken launches in recent history in the U.S., with nearly one in five customers purchasing a Snack Wrap.

And in September, the chain reintroduced Extra Value Meals, which it last promoted before the Covid-19 pandemic.

Outside of the U.S., McDonald’s saw even stronger same-store sales growth. Its international operated markets division, which includes Australia and Canada, reported a 4.3% increase in same-store sales.

“The value platforms we’ve had in place for several quarters in our IOM markets are resonating with our customers and continuing to improve value and…

If it feels like there are a lot of new drinks on restaurant menus, it’s because there are.

Driven by younger consumers who crave customized, cold beverages, chains from Dunkin’ to Dutch Bros, Starbucks and McDonald’s are answering the call.

The number of beverages offered by the top 500 chains has increased by more than 9% in the last year, according to Technomic’s 2025 Away-From-Home Beverage Navigator Report. Companies have leaned even more into cold drinks. Offerings like specialty coffees and energy drinks have seen the most growth on menus over the past two years, as hot coffee and tea beverages on menus decline, the market researcher reported in July.

What’s more, consumers are increasingly heading to a chain simply to get an iced coffee or soda. Last year, the primary driver for beverage sales was “getting a pick-me-up,” as 22% said that was their most common reason for going, up from 20% in 2023, the data found. Meanwhile, 20% said they bought a beverage to “wash down food.” The two occasions for a purchase switched places from the previous year.

“This shift suggests that consumers may be moving toward more beverage-specific occasions, where beverages are the main driver of the foodservice purchase rather than an add-on to go alongside food. This aligns with the influx of beverage-forward concepts in recent years,” the report said.

Higher drink sales are key for major players as they seek to reverse slumps in a tough consumer environment. McDonald’s U.S. restaurants saw same-store sales growth of 2.5% in its second fiscal quarter, reversing two straight quarters of domestic declines as it leaned into buzzy partnerships and value offerings. But executives cautioned low-income consumers remain challenged. While Starbucks also saw better than expected U.S. sales, they still fell 2% from the prior-year period.

Trying to capitalize on the desire for buzzy new drinks will bring its own challenges. Technomic forecasts beverage volume will grow 1% through 2029, but the group said it will likely revise that outlook lower. Customers are also more price sensitive, with 61% of consumers who said they noticed price hikes saying they order beverages less often.