Can MCD Build More Growth From Its $20B Delivery Platform?

McDonald’s Corporation MCD has developed delivery into a sizable global platform, with the channel generating more than $20 billion in annual systemwide sales. The business has become an important component of the company’s digital-first strategy.

McDonald’s delivery reach extends across more than 41,000 restaurants in approximately 100 markets, representing about 90% of its global restaurant base. The company is also scaling the ability to place delivery orders directly through its mobile app and targets 30% of systemwide delivery sales originating from the app by the end of 2027.

McDonald’s describes its delivery operation as efficient and supported by an industry-leading cost structure. The channel represents one of the four strategic areas advanced under Accelerating the Arches, alongside digital, drive-thru and restaurant development. Since introducing the strategy nearly six years ago, McDonald’s has increased systemwide sales by approximately $40 billion and operating income by more than $3 billion.

The company is also strengthening the digital infrastructure across its global operations. McDonald’s is close to bringing its major markets onto one application, one loyalty program and one pricing engine. Its customer platform has nearly 220 million active loyalty users. The company expects its integrated systems to generate cost savings, accelerate innovation, strengthen security and improve stability.

How MCD’s Delivery Economics Compare With Peers

Starbucks Corporation SBUX continues to expand delivery as part of its broader digital and convenience strategy. In the fiscal third quarter of 2026, U.S. comparable sales increased 7.9%, supported by transaction growth of 4.2% and average-ticket growth of 3.6%. Sustained delivery strength contributed to the ticket increase, while Starbucks reported no meaningful cannibalization of in-store visits or current margin trade-off from the channel. The planned integration of delivery into the Starbucks app will allow customers to earn Stars on delivery purchases, supporting greater loyalty participation and reinforcing the role of first-party digital ordering within the company’s delivery strategy.

CAVA Group, Inc. CAVA is strengthening delivery execution through technology and restaurant-level operational improvements. CAVA’s kitchen display system has improved service speed, order accuracy and productivity, supporting stronger third-party platform ratings and greater visibility among customers seeking shorter order lead times. However, a higher mix of third-party delivery primarily drove a 40-basis-point increase in other operating expenses to 12.8% of revenues during the second quarter of 2026. CAVA’s performance illustrates the potential for technology to support delivery growth while highlighting the importance of controlling the incremental costs associated with third-party orders.

For McDonald’s, the delivery platform has the scale, reach and operating structure to boost its next phase of digital growth. Progress toward the 30% in-app delivery-sales target, alongside the channel’s ability to maintain its efficient cost structure, will likely be key indicators of whether McDonald’s can build on its established delivery base.

MCD’s Price Performance, Valuation & Estimates

Shares of McDonald’s have declined 16.4% over the past year compared with the industry’s fall of 8.4%.

MCD’s One-Year Price Performance

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From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.13, above the industry’s average of 3.12.

MCD’s P/S Ratio (Forward 12-Month) vs. Industry

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The Zacks Consensus Estimate for MCD’s 2026 earnings per share (EPS) implies a year-over-year rise of 5.6%. The EPS estimates for 2026 have declined in the past 30 days.

EPS Trend of MCD Stock

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MCD’s Zacks Rank

MCD stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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