McDonald’s Corporation (NYSE:MCD) to Expand Delivery Service to 3,500 Restaurants

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McDonald’s Corporation (NYSE:MCD) to Expand Delivery Service to 3,500 Restaurants

McDonald’s Corporation (NYSE:MCD) is betting on delivery service at its restaurants in the United States. According to the fast food chain, delivery is available at its more than 2,000 locations and the service will be expanded to more than 3,500 restaurants by the end of June, CNBC reported, citing McDonald’s CEO Steve Easterbrook.

“We are encouraged by early results in the U.S. where delivery is resonating well, particularly with our younger customers,” Easterbrook said during an investor conference on Wednesday.

Easterbrook told shareholders that 60% of delivery orders were placed in the evening or late at night and arrived within 30 minutes on average.

Delivery is a key priority for fast-food companies like McDonald’s Corporation (NYSE:MCD) but it is a feasible option for chains to hire a fleet of drivers. So, Uber, Postmates, DoorDash and other companies “can help ease the financial burden on restaurants by acting as a third-party delivery service,” according to CNBC.

McDonald’s Corporation (NYSE:MCD) is testing different delivery models including partnering with third parties for ordering and fulfillment, the company said earlier this year when it announced a long-term global growth plan.

The fast food chain believes that it is “uniquely positioned to become the global leader in delivery.” The company said that nearly 75% of the population lives within three miles of a McDonald’s in its top five markets including U.S., France, the U.K., Germany, and Canada.

“Coupled with the explosive growth in third-party delivery companies, the landscape has created an exceptional opportunity for growth. No other food company in the world has this reach and ability to be this convenient to so many customers through delivery,” McDonald’s said in a statement in March.

Meanwhile, shares of McDonald’s Corporation (NYSE:MCD) were trading up 0.77% on Wednesday. The stock is up 24% so far this year. During the last 12 months, the company’s share price has surged 23.75%.