McDonald's Memorial Day Surge: A Beacon of Hope for Retail REITs in 2025

As Memorial Day 2025 approaches, McDonald's is poised to capitalize on a perfect storm of strategic moves and consumer trends that could redefine its role in the fast-food landscape—and send ripples through the retail real estate sector. With foot traffic recovery efforts gaining traction and expansion plans hitting hyperdrive, the golden arches are emerging as both a bellwether for consumer confidence and a catalyst for retail REIT valuations. Here's why investors should pay attention.

The McDonald's Playbook: Fighting Back Against the Grind of Decline

McDonald's U.S. same-store sales fell 3.6% in Q1 2025, with foot traffic dropping 2.6% year-over-year, underscoring a struggle to retain budget-conscious diners. Yet, the company is fighting back with a mix of value, innovation, and operational boldness:

• 24/7 Expansion: Over 1,000 U.S. locations will soon operate round-the-clock, targeting late-night customers and competing with rivals like Jack in the Box. This move isn't just about convenience—it's about securing prime real estate in high-traffic corridors where 24-hour operations maximize occupancy and visibility.
• Memorial Day Momentum: With 39.4 million Americans planning Memorial Day road trips—a 3.1% increase from 2024—McDonald's drive-thrus and highway locations are primed for a surge. Falling gas prices and a nostalgia-fueled Minecraft Movie meal promotion (which sold out in days) could supercharge traffic during the holiday weekend.
• Menu Reinvention: The launch of McCrispy Strips and the anticipated return of Snack Wraps are designed to attract families and millennials, boosting dinner-time visits—a segment McDonald's has long struggled to dominate.

Why Retail REITs Are Betting on McDonald's Momentum

The fast-food giant's expansion plans—10,000 new global locations by 2027—will require prime real estate, directly boosting demand for high-traffic sites. This creates a virtuous cycle for retail REITs:

1. Prime Location Premiums: REITs like Brixmor Property Group (BRX) and Macerich (MAC), which own malls and strip centers near highways and urban cores, stand to benefit as McDonald's competes for space.
2. Occupancy Stabilization: With U.S. retail vacancy rates near historic lows (6.5% in Q1 2025), landlords can command higher rents. McDonald's need for locations acts as a counterweight to vacancies left by bankruptcies (e.g., Forever 21).
3. Value-Driven Resilience: McDonald's focus on $5 meals and affordable family dining aligns with the shift toward “essentials retail,” a category that's outperforming discretionary spending. REITs with grocery-anchored centers or discount store portfolios (e.g., Coresight Research-backed off-price retailers) gain indirect tailwinds.

Risks, but Not Dealbreakers

Critics point to headwinds like tariffs, inflation, and a divided economy where low-income diners are abandoning fast food. Yet McDonald's has hedged these risks:

• High-Income Stability: Wealthier consumers, whose traffic remains steady, anchor sales, while the McValue platform targets cost-conscious shoppers.
• Global Diversification: While U.S. sales lag, Japan, China, and the Middle East are booming, shielding REITs exposed to international portfolios.

The Bottom Line: Time to Double Down on Retail REITs

McDonald's Memorial Day performance could be the spark that reignites confidence in retail real estate. Investors should focus on REITs with:

• Prime Highway/Strip Mall Exposure: Think BRX, MAC, or W.P. Carey (WPC), which owns industrial and retail properties in high-traffic zones.
• Discount and Grocery Anchors: REITs tied to off-price retailers (e.g., Tanger Factory Outlet (SKT)) or grocery-anchored centers (e.g., Kimco Realty (KIM)) will benefit as consumers prioritize value.

Final Take: McDonald's Is Writing the Playbook for Recovery

The fast-food giant's Memorial Day push isn't just about burgers and fries—it's a masterclass in adapting to economic reality. For retail REITs, McDonald's success means stable tenants, rising rents, and a roadmap to navigate the “new normal.” With gas prices low and Memorial Day travel surging, now is the time to invest in the real estate that will profit from the comeback.

Act now—before the arches go global.