McDonald’s India Plans $80 Million Investment to Expand to Over 500 Stores by 2028
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Khushi Jain
- November 2, 2026
McDonald’s India (North & East) plans to invest approximately $80 million over the next two-and-a-half years to expand its restaurant network and strengthen digital operations as consumer demand grows and competition increases in India’s quick-service restaurant (QSR) market.
According to a report by The Economic Times, the revised investment comes amid growing competition from KFC operator Devyani International and Burger King. The company also expects profitability to remain under pressure because of rising food and packaging costs.
Sanjeev Agrawal, chairman of McDonald’s India (North & East), said the company would fund its expansion through internal resources.
The company had previously announced plans to invest close to $100 million over four years to accelerate business growth.
McDonald’s India Targets Over 500 Stores by 2028
McDonald’s north and east India operations are managed by Connaught Plaza Restaurants (CPRL), which was acquired by MMG Group in 2020 from Chicago-based McDonald’s Corp following a prolonged legal dispute involving CPRL’s former head, Vikram Bakshi.
The company currently operates more than 320 restaurants across north and east India.
Under its expansion plans, CPRL expects its restaurant network to exceed 500 stores by 2028.
According to Agrawal, the new outlets will include drive-through restaurants, highway locations and stores at government-run fuel stations.
The planned investment will support restaurant expansion and digitisation as McDonald’s seeks to meet consumer demand across its operating regions.
CPRL Expects Rs 2,000 Crore Revenue in FY27
CPRL expects to close FY27 with revenue of Rs 2,000 crore, compared with Rs 1,695 crore in FY26, according to company filings cited in the report.
The company also expects an EBITDA margin of 12% in FY27.
However, profitability remains under pressure because of rising operating costs.
Agrawal said the company had avoided increasing menu prices despite higher expenses over the past year.
The ongoing crisis in West Asia has contributed to rising costs for oil, transportation and packaging, affecting restaurant operations.
He added that the company had been waiting for the crisis to ease, but inflationary pressures continued.
McDonald’s now plans to introduce marginal price increases on selected menu items while maintaining its focus on value-conscious customers.
McDonald’s Global Business Focuses on Franchise-Led Growth
McDonald’s expansion in India comes as several multinational consumer companies, including Apple and Unilever, are focusing on India for growth while sales in some established international markets remain slow.
At its September 2026 Investor Day, McDonald’s global chief Chris Kempczinski announced an $8.5 billion franchisee support package to support growth in franchise-led markets.
According to McDonald’s official investor relations website, the company’s global growth strategy includes supporting franchisees through capital investment and operational initiatives.
Of the total commitment, $5 billion was allocated for franchisees by 2030 through rent relief and direct capital assistance.
Kempczinski also cautioned that customer traffic in developed Western markets could remain flat while inflation stayed elevated.
The impact of inflation on restaurant traffic and consumer spending has also been discussed in Reuters’ business coverage.
In its June 2026 quarter earnings, McDonald’s reported a 0.8% year-on-year increase in US sales, while its international developmental licensed markets recorded 1.9% growth.
McDonald’s India operates under a developmental licence model.
The company’s planned investment in north and east India will focus on expanding its restaurant network and digital operations, while rising costs and competition remain key challenges.
Frequently Asked Questions (FAQs)
1. How much is McDonald’s India planning to invest?
McDonald’s India (North & East) plans to invest approximately $80 million over the next two-and-a-half years in restaurant expansion and digitisation.
2. How many McDonald’s restaurants operate in north and east India?
Connaught Plaza Restaurants currently operates more than 320 restaurants and expects to cross 500 stores by 2028.
3. What is McDonald’s India (North & East)’s expected FY27 revenue?
CPRL expects revenue of Rs 2,000 crore in FY27, compared with Rs 1,695 crore in FY26.
4. Why is McDonald’s considering price increases in India?
The company is facing higher oil, transportation and packaging costs. It plans marginal price increases on selected items.
5. Who operates McDonald’s restaurants in north and east India?
Connaught Plaza Restaurants (CPRL), acquired by MMG Group in 2020, operates McDonald’s north and east India business.
