"Delivery is a $100 billion business and we have about $1 billion of it," McDonald's Kevin Ozan, executive vice president and CFO, said on Thursday at an analyst conference hosted by RBC Capital Markets.
Late last month, Micky D's announced its partnership with UberEats, allowing it to expand its McDelivery service to 270 restaurants in Chicago and more than 700 nationwide, including 300 in Los Angeles, 144 in Phoenix and 59 in Columbus, Ohio. The service is being provided by ride-hailing app company Uber's food delivery service.
On Thursday, Ozan said McDonald's is starting to see "really interesting results" from McDelivery including that 60% of the orders are being done in the evening or late at night and that 75% is incremental, which means people who order McDonald's for delivery wouldn't have otherwise gone into one of its restaurants. Most of the McDelivery users are young, too.
"About 75% of the population lives within five miles of a McDonald's, so from a convenience standpoint, we became an obvious player," Ozan said.
Ozan said McDelivery is currently offered at 2,000 restaurants in the U.S. and will expand to 3,500 by the end of June.
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