McDonald’s takes aim at Starbucks with new drinks menu

McDonald's has tried for decades to win more beverage business. The fast-food giant never mentions Starbucks, but that's the giant in the space, which the Big Mac-maker would have to take share from in order to meaningfully impact its business.

It's a move for the burger chain to unlock added sales and the higher margins that beverages deliver.

Beverage and food economics are central to restaurant profitability, with industry analysis showing that restaurants typically operate on very thin net margins of around 3–6%, making higher-margin categories like beverages disproportionately important, according to industry analysis from Toast.

"Beverages typically deliver 60-80% margins, while food hovers around 65-70% gross margin. A restaurant leaning heavily on food sales must generate significantly more revenue to match the profits of establishments with strong beverage programs," according to KitchenNmbrs.

CySoda, a beverage industry trade publication, explained why chains, including McDonald's, want to grow their beverage business.

"Restaurants often generate significant profits from soda sales due to the low cost of production and high markup. Typically, a fountain soda costs a restaurant only a few cents per serving, including the syrup, carbonated water, and cup, yet it is sold to customers for several dollars," the website shared.

McDonald's has tried multiple ways to grow its beverage sales, including the McCafe coffee verages, and the failed CosMcs spin-off drinks-based chain. Now, the restaurant giant plans to take the lessons learned at that short-lived experiment to add a new lineup of beverages to its core menu beginning April 28.

McDonald's launches a new beverage lineup

McDonald's has not officially released its new beverage lineup, but Snackolator, an Instagram page that reports on the fast food, snacks, and beverages industry, has reported what the chain will be releasing.

"It's FINALLY here! McDonald's is about to drop their new crafted beverage lineup on April 28th with new sodas and refreshers," according to Snackolator.

The lineup is going to start with six new beverages:

• Strawberry Watermelon Refresher: Strawberry and Watermelon flavors blended with lemonade, ice, and freeze-dried strawberries
• Mango Pineapple Refresher: Mango and Pineapple flavors blended with lemonade and bursting boba.
• Sprite Berry Burst: Sprite mixed with blue raspberry syrup and topped with cold foam.
• Dirty Dr. Pepper: Dr. Pepper with vanilla flavor and topped with cold foam.
• Orange Dream: Hi-C with vanilla flavor and topped with cold foam.
• Blackberry Passion Fruit Refresher: Blackberry and passion fruit flavors mixed with lemonade and topped with freeze-dried dragon fruit.

"These all drop April 28, although some locations might begin selling later. Sometimes those initial dates are a 'soft sell' period where stores can sell but can also hold off another week," according to Snackolator.

McDonald's confirmed to ABC News that new drinks were coming, but not the lineup.

"Our fans' love for McDonald’s beverages runs deep...Next month, we’re building on that passion with a new era of beverages, featuring a variety of Refreshers and crafted sodas rolling out nationwide," the company said in a statement. "We’re excited for fans across the country to taste what's next."

McDonald's learned from CosMc's

While McDonald's only operated CosMc's for about 18 months, the company learned a lot from the short-lived experiment.

Chief Restaurant Experience Officer Jill McDonald commented on what the chain learned from CosMc's, and how it plans to brand its new beverage lineup during the company's fourth-quarter earnings call.

"We're really excited about the beverage launch in the U.S. later this year, and we are going to do it under the McCafe brand. So we obviously learned a lot through the CosMc's test, and those learnings have been applied to how we've decided to set up this new beverage range. but we are going to be launching under the McCafe brand," she said.

More Restaurants 

• 30 year old restaurant has closed all restaurants
• After bankruptcy, Hooters closes restaurants, fights for survival
• Iconic Las Vegas Strip restaurant closes without warning

McDonald noted that the test did drive new sales.

"It did drive incremental occasions. These were mostly snack, dinner, and evening. And we also saw a higher average check. So the financials are really playing out well," she shared.

She also shared that the CosMc's test helped McDonald's figure out its lineup for the national launch.

"We learned a lot about the recipes. We offered a range of recipes across indulgent coffees, refreshers, energy, and soda, crafted sodas. All did well, particularly the crafted sodas, refreshers, and energy drinks," McDonald explained.

Can McDonald's take market share from Starbucks?

As the coffee and beverage sales leader, Starbucks has been a target for rivals.

“When you’re the market leader, everyone else comes for you, and they try to nibble away at your market share. And there is a lot more competition than there used to be,” GlobalData Managing Director Neil Saunders told CNBC.

Experts, however, told CNBC they see Starbucks as less experiential than it used to be. This has led to increased competition, with value players like McDonald’s and quick-service restaurants vying for a more price-conscious customer.

“What matters right now is obvious value. The consumer is more ‘choiceful,’” said Kevin McCarthy, a managing director at Neuberger Berman.

It's also possible that Starbucks huge national footprint increased the overall market for coffee.

"Out-of-home coffee consumption resumed its highest level since January 2020, and a majority of Americans believe coffee is good for their health, according to exclusive consumer polling from the National Coffee Association.

The NCA also shared some facts that suggest the overall market has gotten bigger.

• Specialty coffee maintains its 13-year high, with 45% of Americans having this type of coffee in the past day.
• Among specialty coffees, past-day consumption grew the most for non-espresso-based beverages, up by 26% since January 2024.
• Cold brew was the most popular non-espresso-based beverage, with 21% of Americans drinking cold brew in the past week — up by more than 30% since January 2024.

Starbucks has been losing share

McDonald's does have some room to compete with Starbucks when it comes to value, according to MorningStar's Ari Felhandler.

"Starbucks has fallen victim to a competitive restaurant landscape, as its value proposition has been missing the mark with consumers," he shared.

The coffee giant has seen its market share fall.

Starbucks’ share of spending at all U.S. coffee shops fell in 2024 and 2025; it now stands at 48%, down from 52% in 2023, according to Technomic, a food industry consulting firm, the Associated Press (AP) reported.

“People haven’t fallen out of love with Starbucks, but they’re now polyamorous in their coffee choices,” said Chris Kayes, chair of the management department in the George Washington University School of Business. “People are now experimenting with other coffees, and they’re seeing what’s out there.”

Related: McDonald’s rival closes after 79 years