New Restaurants Drive McDonald's Growth Amid Industry Challenges

McDonald's shares took a hit in September after the company outlined its new plan at Investor Day, but new restaurant openings are providing a growth boost that isn't reflected in the stock price.

New restaurants contributed significantly to McDonald's second-quarter sales growth of 4% in constant currency. System-wide sales include every McDonald's location, including those run by franchisees. In contrast, existing restaurants only saw a 1.3% increase in comparable sales, which tracks restaurants already open. This roughly 2.7-point gap between system-wide and comparable sales growth represents the impact of new restaurant openings.

McDonald's plans to open about 2,600 gross restaurants by the end of 2026, despite a challenging consumer environment with flat or negative fast-food industry traffic in several major markets. The company expects high inflation and flat traffic to continue affecting the restaurant industry.