McDonald's Aims to Appeal to Gen Z with New Line of Colored Drinks

McDonald's is testing a new line of colorful iced drinks, including Creamy Vanilla Cold Brews and Dirty Sodas, in 500 restaurants in Wisconsin and Colorado. This move is part of a bigger trend in the fast food industry where premium beverages are driving growth. The drink market could be worth $100 billion across the U.S., Canada, Australia, and Europe. Analysts have a Moderate Buy consensus rating on MCD stock with an average price target of $335.87 per share.

McDonald's (MCD) is set to introduce a new line of colorful iced drinks in a test run across 500 restaurants in Wisconsin and Colorado starting on September 2, 2025. The fast food giant aims to tap into the growing demand for premium beverages, particularly among younger customers.

The new drinks include the Creamy Vanilla Cold Brew, Strawberry Watermelon Refresher, and Sprite Lunar Splash. These beverages are part of McDonald's broader strategy to enhance its beverage offerings, building on the lessons learned from its CosMc's concept restaurant, which closed in May 2025 [1].

The test is designed to gather customer feedback and assess the operational feasibility of scaling the new drinks across all locations. McDonald's believes that the test will help it advance its global beverage platform and align with the evolving tastes of its customers.

This move follows a broader trend in the fast food industry, where premium beverages are driving growth. According to a report by Technomic, beverage- and snack-focused chains saw nearly 10% sales growth in 2024, compared to 1.4% growth for burger-focused chains. The drink market could be worth $100 billion across the U.S., Canada, Australia, and Europe [2].

Analysts have a Moderate Buy consensus rating on MCD stock, with an average price target of $335.87 per share, indicating a 13.7% upside potential [2].

References:
[1] https://www.mlive.com/news/2025/07/largest-burger-chain-in-us-to-test-new-drink-options-at-500-locations-this-fall.html
[2] https://www.tipranks.com/news/mcdonalds-mcd-targets-gen-z-with-colorful-cold-brews-and-dirty-sodas