In a bid to diversify its beverage offerings, fast-food behemoth McDonald’s (NYSE:MCD) is reportedly gearing up to add energy drinks and specialty sodas to its U.S. menus.
McDonald’s is planning to introduce new beverages such as Red Bull Dragonberry Energizer, Dirty Dr Pepper, and Mango Pineapple Refresher in the coming months, with the energy drinks expected to debut in August, reported The Wall Street Journal on Sunday.
The fast food giant has been developing its beverage expansion for years, experimenting with drinks like Sour Cherry Energy Burst and Blackberry Mint Green Tea at its short-lived concept, CosMc’s.
The company aims to offer these new beverages at prices lower than those of competitors such as Starbucks Corp. (NASDAQ:SBUX), Dutch Bros (NYSE:BROS), and Sonic, stated the publication, citing company documents.
The new beverages are expected to deliver strong profit margins for franchise owners, who run most of the restaurants. Many have reportedly spent thousands on new mixing equipment to drive sales without slowing service. The company said it worked closely with operators to determine the most efficient way to prepare the drinks.
McDonald’s did not immediately respond to Benzinga’s request for comments.
McDonald’s Rejigs Menu, Eyes Drinks Growth
This report comes as McDonald’s adjusts its menu to serve a rising number of Americans using GLP-1 weight-loss drugs like Ozempic and Wegovy, which are reshaping portion sizes, snacking habits, and drink preferences.
During its fourth-quarter earnings call, CEO Chris Kempczinski said the company is testing new menu options tailored to these consumers, who are increasingly leaning toward protein-rich choices.
The fast food chain is pushing to capture a bigger share of the $100 billion global beverage market, building on insights from its CosMc’s experiment. After closing the concept, the company began testing new drinks in about 500 locations.
Charlie Newberger, McDonald’s global head of beverages, previously told the WSJ that early results highlighted the need for a diverse, appealing lineup to stand out, while also showing limited customer interest in certain options like matcha and turmeric-flavored lattes.
Moreover, the company’s stock hit new all-time highs in February after its fourth quarter results, with analysts suggesting more upside. TD Cowen analyst Andrew Charles expressed optimism about the company’s performance across all segments. Meanwhile, BTIG analyst Peter Saleh highlighted that U.S. fast food traffic was higher thanks to the company’s focus on value promotions.
Benzinga’s Edge Rankings place McDonald’s in the 88th percentile for growth and the 15th percentile for value, reflecting its mixed performance. Benzinga’s screener allows you to compare McDonald’s performance with its peers.
MCD Price Action: Over the past month, McDonald’s stock declined 6.37%, as per Benzinga Pro. On Friday, it fell 1.25% to close at $305.68.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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