McDonald’s plans small-format spinoff brand

The fast-food giant shared details about the new concept during its second-quarter earnings call yesterday (27 July).

“CosMc’s is a small format concept with all the DNA of McDonald’s, but with its own unique personality,” McDonald’s CEO Chris Kempczinski said.

The name for the new brand comes from CosMc, a McDonald mascot who appeared in advertisements in the late 1980s and early 1990s and takes the form of an alien from outer space who craves McDonald’s food.

The revival of CosMc follows the return of another McDonald’s mascot, Grimace. In June, the burger chain introduced the Grimace Birthday Meal in its US stores, which included a bright purple milkshake and is credited with being a major driver of sales in Q2.

“This quarter, if I’m being honest, the theme was Grimace,” Kempczinski said.

Global comparable sales for McDonald’s increased 11.7% for the quarter (ended 30 June 2023) with double-digit growth across each segment.

Its International Operated Markets segment recorded a like-for-like sales rise of 11.9%, driven by strong comparable sales led by the UK and Germany.

Kempczinski said the UK and Germany were facing similar cost pressures, adding that the former had ‘close to worst consumer climate in Europe’. However, he added that the group remains ‘overall pleased’ with the performance of its European markets.

“The UK is dealing with the worst, or close to the worst consumer sentiment in Europe,” he said. “It’s putting some pressure on the business but we’re overall pleased with how our European markets are performing.

“What the teams have introduced in the UK and Germany is a great example of learning from each other and working through the broader macroeconomic challenges.”

With regards to CosMc’s, Kempczinski said the company will test the concept in a handful of sites in ‘a limited geography’ in early 2024. McDonald’s said it will share more details about those plans at its investor day in December.