McDonald’s (MCD) Shutters Its ‘CosMc’s’ Spinoff Two Years After Launch

McDonald’s (MCD) is shutting down its CosMc’s restaurant spinoff two years after it launched.

Chicago-based McDonald’s initially launched CosMc’s because executives at the company thought a restaurant chain focused on customizable drinks would be a hit with consumers. They thought wrong as CosMc’s struggled to attract American consumers, many of whom said they were confused by the new restaurant chain and its branding.

Despite heavy promotion on the part of McDonald’s, fewer people customized their drinks than the company had hoped. CosMc’s menu consisted of sweet drinks and light snacks, with the company advertising the brand as way to overcome people’s afternoon slump or mid-day hunger.

Difficult Environment

The closure of CosMc’s comes during an increasingly difficult operating environment for McDonald’s and other quick service restaurant chains. The Golden Arches recently reported its second consecutive quarter of sales declines as customers pullback on their discretionary spending amid rising economic uncertainty.

McDonald’s said that while the CosMc’s locations will disappear, some menu items from the spinoff chain will remain. Company CEO Chris Kempczinski said recently that McDonald’s is testing new customizable drinks inspired by CosMc’s with select franchisees.

All CosMc’s locations, which consist of four restaurants in Texas and one in Illinois, will close at the end of June this year. CosMc’s standalone app and loyalty program will also be discontinued. MCD stock has gained 9% so far in 2025.

Is MCD Stock a Buy?

The stock of McDonald’s has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 14 Buy and 10 Hold recommendations issued in the last three months. The average MCD price target of $334.74 implies 6.23% upside from current levels.

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