MCD · News · 20260915N

Competition and Market Position

MCDONALDS CORP · 2026-09-15 · Importance 8 · Surprise 24

Mixue, a Chinese beverage chain, has surpassed McDonald’s in store count by targeting underserved areas with low-priced products. Its model differs from McDonald’s because Mixue primarily sells ingredients and equipment to franchisees rather than relying mainly on restaurant sales. Mixue’s rapid store growth, declining revenue and profit per location, and signs of saturation highlight intensified low-price competition and potential limits to store-count-led expansion in China and other markets.

Key facts

• RBC Capital said McDonald's is expected to detail its NEXT strategy and new financial targets through 2030, including a remodel program, at its investor day. source
• RBC Capital anticipates investor interest in restaurant stocks will not increase until McDonald's same-store sales growth reaccelerates, likely not before Q1 2027. source
• RBC Capital reduced its price target for McDonald's to $290 from $295 and maintained a Sector Perform rating. source
• Jefferies lowered its price target for McDonald's to $325 from $350 while keeping a Buy rating. source
• There are 11 countries where you won't find a single McDonald's location. source