McDonald's to open 1,000 new restaurants, speed up tech upgrades

Nathan Bomey and Zlati Meyer | USA TODAY

Show Caption Hide Caption McDonald's is bringing back its wildly popular Dollar Menu McDonald's is bringing back its wildly Popular Dollar Menu

McDonald's plans to open about 1,000 new stores worldwide and speed up plans to add new self-service ordering systems and other store upgrades as the fast-food giant's momentum continues.

The company reported strong fourth-quarter sales Tuesday, fueled by strong interest in its McPick 2 options, beverage deals and a "strong consumer response" to its new Buttermilk Crispy Tenders.

The promising sales report applied to the period immediately preceding January's revival of its popular Dollar Menu, with items priced at $1, $2 and $3.

McDonald's declined to provide a breakdown of where the new restaurants will be located. The company has about 37,000 locations worldwide.

In the fourth quarter, sales at restaurants open at least a year jumped 5.5% worldwide and 4.5% in the U.S.

"Our business is growing, and it’s fundamentally sound," McDonald's CEO Steve Easterbrook said during the analyst call. "2017 was our best performance in six years. Customers are rewarding us with more visits."

Among the factors behind that success, he explained, were a gain in market share around the world and the increasing popularity of delivery and mobile ordering. The chain is making technological upgrades, such as self-service kiosks at some locations and delivering food to a customer's table when it's ready.

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The company said it would accelerate those improvements. All told, the company plans to invest $2.4 billion in upgrades in 2018.

"Our strong performance in 2017 shows we have momentum," Chief Financial Officer Kevin Ozan said during the call, later adding, "our business is storming ahead into 2018."

Fourth-quarter revenue technically declined 11% to $5.34 billion, but that was attributable to the company's effort to turn more company-owned locations into franchises. Net income declined 41% to $699 million.

"Overall, McDonald's is in a good position. Thanks to its flexibility in pricing and menu innovation, it is growing market and customer share," said Neil Saunders, managing director of GlobalData Retail.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.