How McDonald’s is Achieving $6 Billion in Sales with its Loyalty Program and Expanding Digital Presence

McDonald’s has announced that its loyalty program members have contributed over $6 billion in system-wide sales globally in the first quarter of the year. While the company has 34 million active digital customers in the U.S., it lags slightly behind Chipotle Mexican Grill with 40 million members and Starbucks with 32.8 million members. Despite this, McDonald’s has set a goal of reaching 100 million loyalty program members by 2027.

To achieve this ambitious goal, McDonald’s is suggesting that franchisees use their existing marketing contribution of at least 4% of gross sales to fund the global digital marketing fund. This may require franchisees to cut back on traditional marketing strategies like TV commercials and focus on tactics that have a more direct impact on sales. In return for their investment, U.S. restaurants are forecasted to see an increase in cash flow of approximately $2,600 per year starting in 2025 as digital investment costs are shifted from a franchisee’s profit and loss statement to the marketing contribution. Franchisees in other markets such as the U.K., Canada, Australia, and Germany will also participate in funding the global digital marketing fund, with other markets expected to follow suit in the future.