McDonald's has unveiled its long-term global growth plan, which includes the aim to become the global leader in food delivery.
Due to its extraordinary footprint, McDonald's stated it is uniquely positioned to become the delivery front-runner. In McDonald's top five markets (U.S., France, the U.K., Germany and Canada) nearly 75% of the population lives within three miles of a McDonald's.
McDonald's is already one of the largest providers of delivered food in the world, with annual Systemwide delivery sales of nearly $1bn across various markets including China, South Korea and Singapore. China has tripled its delivery business since its launch in 2008. In 2016 alone, China's delivery business grew 30%.
No other food company in the world has this reach and ability to be this convenient to so many customers through delivery. Currently, McDonald's is experimenting with different delivery models including partnering with third parties for ordering and fulfillment throughout the world.
CEO Steve Easterbrook said, 'We have fundamentally changed the trajectory of our business over the past two years. Now, we are fit for purpose, ready to build on our momentum and transition to focus our efforts on profitable, long-term growth.
'We are building a better McDonald's, one that makes delicious feel good moments easy for everyone, and I believe the moves we are making will reassert McDonald's as the global leader in the informal eating out category.'
McDonald's has updated its long-term, average annual constant currency financial targets, beginning in 2019, and has stated it will aim for systemwide sales growth of 3% to 5%, and will grow operating margin from the high-20% range to the mid-40% range.