McDo Tests CosMc's Stores As Chain Focuses On Beverages

McDonald's is set to test a smaller-format concept store called "CosMc's," which will sell cold beverages, including flavored iced teas and slushes, as the fast-food giant outlines an ambitious growth plan.

The first CosMc's location will open in Bolingbrook, Illinois, this week as part of a limited test run, the company announced on Wednesday during its investor day. I Photo: McDonald's

The first CosMc's location will open in Bolingbrook, Illinois, this week as part of a limited test run, the company announced on Wednesday during its investor day.

McDonald's aims to open about 10 pilot stores by the end of 2024, with the rest set to come up in Texas, according to CEO Chris Kempczinski. The company plans to study the results from the test locations for at least one year.

"While the number of locations is not particularly concerning to the industry, it will likely put somewhat of a valuation cap on Starbucks and Dutch Bros," noted Guggenheim analyst Gregory Francfort in a statement.

Based on McDonald's alien character CosMc, which appeared in a series of ads in the 1980s and '90s, the CosMc's stores will also test Drive-Thru pickup lanes and cashless payment devices to boost service speed.

WEEKLY FEATURE : Jose Mari Chan And The Christmas Anthem