McDonald's

Financing

With CosMc's, McDonald's bows to reality

The Bottom Line: It was always unlikely that CosMc’s would be much more than a few test locations, thanks to competitive and financial reality in the fast-food beverage business.

Operations

McDonald's plans to close its CosMc's locations

The fast-food giant will instead introduce beverages from the test concept into “hundreds” of McDonald’s restaurants as a test this year. The CosMc’s restaurants will start closing in late June.

The fast-food giant plans to target late-night diners this summer, with the vast majority of its restaurants open until midnight or later.

The doughnut chain is being accused of making misleading statements on the sale of doughnuts inside McDonald’s restaurants after its delay caused shares to plunge.

The fast-food giant and its franchisees vow to hire 375,000 people this summer, which would be the most in years. It also plans to open 900 U.S. restaurants by 2027.

The Bottom Line: The chains' partnership has been slow to progress and hasn't generated the sales both companies hoped for. Now it's on hold as Krispy Kreme works to improve its own struggling profitability.

The fast-food giant started selling its McCrispy Strips nationwide on Monday, five years after it discontinued its chicken tenders. But the market is vastly different today.

The Bottom Line: Consumer sentiment hit the fast-food giant harder than expected. But comments from the company, and results from other chains, suggest a broadening economic malaise.

The fast-food giant’s same-store sales declined 3.6% in the U.S., and 1% globally, despite McDonald's value menu initiatives. CEO Chris Kempczinski said consumers are “grappling with economic uncertainty.”

The fast-food giant will debut McCrispy Strips on May 5, its first new permanent menu item in four years and another push into the chicken business. It also plans a new Creamy Chili Dip.

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