McDonald’s is currently accelerating its international growth strategy with a specific target of operating 50,000 restaurants globally by the end of 2027. This aggressive expansion plan comes as many competitors struggle to maintain their physical footprint in a volatile market.
As reported by Detik Finance, the corporation views the development of new locations as a fundamental pillar for long-term financial health. This strategy persists even as the broader quick-service restaurant industry faces a tightening consumer environment and rising operational costs.
The current growth trajectory puts McDonald’s in a position to potentially reclaim the title of the world’s largest restaurant brand. Subway has held this position since 2011, having surpassed McDonald’s in global unit counts over a decade ago.
“Our aim was to insure repeat business based on the system’s reputation rather than on the quality of a single store or operator,” founder Ray Kroc wrote in his book, “Grinding It Out: The Making of McDonald’s”.
Subway took the lead in the United States back in 2002. At that time, Fox News reported that the Milford-based sandwich chain operated 13,247 domestic stores, which was 148 more than McDonald’s total at the end of December.
However, analysts have long debated whether unit count translates directly to market dominance. Mark Kalinowski, a fast-food analyst with Salomon Smith Barney, noted that having more units offers a convenience factor and visibility but does not always result in massive financial gains.
While McDonald’s expands, Subway has been consistently reducing its footprint. The sandwich giant has closed approximately one-third of its U.S. locations since 2016, a downward trend that intensified following high-profile PR crises.
The decline followed the 2015 legal proceedings involving long-time spokesperson Jared Fogle. According to an FBI press release, Fogle was charged with distributing and receiving child pornography and engaging in commercial sex acts with minors.
Patrick Hillman, a vice president at Levick Communications, suggested the brand faced a horrific situation. He noted that the company had to pivot back to its dedication to healthy alternatives to distance itself from the spokesperson’s actions.
The Scale of Subway’s Contraction
Data from QSR Magazine indicates that Subway’s domestic store count fell for the 10th consecutive year in 2025. The chain’s total number of restaurants has been sliding since peaking at 27,000 locations in 2015.
| Year | Net Store Closures |
|---|---|
| 357 | 866 |
| 1,108 | 996 |
| 1,601 | 1,043 |
| 571 | 443 |
| 631 | 729 |
Between 2016 and 2025, the brand saw a net loss of 8,345 restaurants. Industry experts point to falling same-store sales since 2012 as the primary driver behind this steady contraction of the brand’s physical presence.
Restaurant Business Editor in Chief Jonathan Maze explained that aggressive development in the past may have cannibalized existing locations. This over-saturation eventually hurt the individual profitability of franchisees across the network.
Competition from newer fast-casual brands like Chipotle and Jersey Mike’s has also shifted consumer preferences. These competitors offer perceived higher quality, which has challenged Subway’s long-standing “Eat Fresh” marketing message.