For McDonald's (MCD), 32,000 restaurants in 100 countries isn't enough. The quick service restaurant announced in a meeting with Wall Street analysts that it will open 1,000 new restaurants next year. Most will be in the United States, China, Australia, Russia, Germany and France. Don't expect to see any in Iceland, though, as the company is closing its three restaurants there and has no plans to return in the near future.
The company is also looking to rehabilitate the interiors and exteriors of another 2,300 locations in 2010 – approximately half of them in Europe. In all, this should cost around $2.4 billion. For 2009, McDonald's expects its capital expenditures to reach $2.1 billion on 900 new restaurant openings. The chain is increasing its rate of new restaurant openings by more than 10% from 2009 to 2010.
McDonald's has become a new option for many consumers during a recession as its low prices are more accessible than meals from sit-down restaurants. So, it will be interesting to see how a recovery will treat the fast food chain, though it's unlikely to be an issue until the second half of next year. A slow recovery, of course, puts prosperity a bit further out, which perpetuates an economic climate that favors McDonald's.
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