McDonald's Slows Expansion Pace Amid Rising Costs and Softening Demand

McDonald's has delayed its goal of reaching 50,000 locations worldwide to 2028 from the end of 2027. The move may raise concerns about slowing growth, but management characterized it as a 'disciplined adjustment' rather than a change in strategy.

The company is prioritizing attractive returns and quality over simply adding units due to cumulative inflation in development costs and a pressured consumer environment.

Despite this, McDonald's still expects to open roughly 2,600 gross restaurants in 2026, which management described as the fastest period of restaurant growth in its history.

The company's U.S. business is currently experiencing slow comparable sales growth, with an increase of just 0.8% in the second quarter and a slight decline in July.