Can McDonald's Seize a $100 Billion Drink Market by 2026?

McDonald’s Expands Beverage Strategy for Global Growth

McDonald’s Corporation (MCD) is intensifying its focus on beverages as a major growth driver, targeting a worldwide market valued at over $100 billion. The company’s leadership has announced plans to introduce new beverage selections in the United States and select international locations starting in 2026. This move follows a successful pilot program in the U.S. during the fourth quarter, which involved more than 500 restaurants and surpassed expectations, offering valuable insights for future expansion.

The upcoming beverage collection, set to debut under the McCafé label, will feature energy drinks, decadent iced coffees, fruit-flavored refreshers, and specialty sodas. According to management, these drinks encouraged additional customer visits throughout various times of the day—such as snack, dinner, and evening hours—during the test phase. The trial also resulted in higher average transaction values, indicating strong consumer interest in the expanded beverage menu.

McDonald’s reported that several beverage categories, including specialty sodas, refreshers, and energy drinks, performed particularly well during the pilot. The company also highlighted its ongoing collaboration with Red Bull, with intentions to further develop this partnership in both the U.S. and other markets. Insights from the U.S. test are being used to fine-tune recipes and prepare for a larger rollout.

Beyond the United States, McDonald’s conducted a smaller-scale beverage test in Australia at the end of 2025. The findings from this trial helped the company adjust recipes and adapt flavors to suit local tastes. As McDonald’s prepares for a broader launch in 2026, management emphasized their commitment to aligning new products with customer preferences, leveraging the knowledge gained from recent testing efforts.

Beverage Innovation Among Industry Leaders

Other major players, including Starbucks Corporation (SBUX) and Dutch Bros Inc. (BROS), are also prioritizing beverage innovation and expanding their drink offerings.

Starbucks has seen strong demand for espresso-based drinks and tea, as well as growth in its cold foam platform. The company continues to introduce new beverage formats and flavors, aiming to boost sales during afternoon hours with options like energy drinks, sparkling beverages, and other indulgent choices.

Meanwhile, Dutch Bros is focusing on its customizable beverage platform, allowing customers to create a wide variety of drink combinations. The company’s menu includes energy drinks, iced beverages, and specialty options, which management credits for driving growth in its beverage segment.

In this competitive landscape, McDonald’s is advancing its beverage initiatives, using insights from recent tests to refine its offerings. As the company expands these products to more markets, the beverage strategy could become a significant growth catalyst.

McDonald’s Stock Performance, Valuation, and Analyst Estimates

Over the past year, McDonald’s shares have slipped by 0.9%, while the broader restaurant industry experienced a 10.5% decline.

One-Year Price Performance of McDonald’s

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From a valuation perspective, McDonald’s (MCD) currently trades at a forward price-to-sales (P/S) ratio of 7.58, which is significantly higher than the industry average of 3.34.

Forward P/S Ratio: McDonald’s vs. Industry

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Analyst consensus from Zacks projects McDonald’s earnings per share to grow by 8.4% in 2026 and 9.2% in 2027, year over year. However, EPS estimates for 2026 have been revised downward over the past month.

EPS Trend for McDonald’s

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Current Zacks Rank for McDonald’s

At present, McDonald’s stock holds a Zacks Rank #3 (Hold). You can view the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Additional Resources and Reports

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• Starbucks Corporation (SBUX): Free Stock Analysis Report
• McDonald's Corporation (MCD): Free Stock Analysis Report
• Dutch Bros Inc. (BROS): Free Stock Analysis Report

This article was originally published by Zacks Investment Research.

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