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Home Lifestyle Health and Longevity

Mixue Overtakes McDonald’s as the World’s Largest Food Chain by Locations

by Team Lumida
March 3, 2025
in Health and Longevity
Reading Time: 4 mins read
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a mcdonald's sign with a cloudy sky in the background

Photo by Jurij Kenda on Unsplash

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Key Takeaways:

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  • Mixue Ice Cream and Tea now operates 45,000 stores globally, surpassing McDonald’s and Starbucks in total locations.
  • The Chinese chain’s low-cost model, with products priced under $1, resonates with cost-conscious consumers amid China’s economic slowdown.
  • Mixue raised over $400 million in a Hong Kong IPO, achieving a valuation of more than $10 billion and signaling plans for further global expansion.
  • Its success is driven by low franchising fees, a simple menu, and a strong cultural presence through its Snow King mascot and catchy jingle.

What Happened?

Mixue Ice Cream and Tea, a Chinese fast-food chain, has become the world’s largest food-and-beverage chain by number of locations, ending 2024 with 45,000 stores. Known for its low-cost ice cream and drinks priced under $1, Mixue has rapidly expanded across Asia and Australia, doubling its store count in just three years. The company raised over $400 million in a Hong Kong IPO, with shares surging nearly 30% on debut, giving it a valuation of over $10 billion. Despite its rapid growth, Mixue acknowledged in its IPO filing the risk of cannibalizing sales at existing stores as it continues to expand.


Why It Matters?

Mixue’s success highlights the growing demand for affordable products, particularly in China, where economic challenges have made cost-efficiency a priority for consumers. Its low franchising fees and supply-driven revenue model have enabled rapid expansion, making it a formidable competitor to global giants like McDonald’s and Starbucks. The chain’s cultural appeal, driven by its Snow King mascot and catchy jingle, has embedded it in Chinese pop culture, further solidifying its market position. For investors, Mixue’s IPO and valuation reflect confidence in its growth potential, though risks of overexpansion and market saturation remain.


What’s Next?

Mixue plans to continue its aggressive global expansion, with a focus on smaller cities and international markets. While 90% of its stores are currently in China, the company aims to grow its presence in other Asian countries and Australia, though it has not announced plans to enter the U.S. Investors should watch for how Mixue balances growth with the risk of cannibalization and whether its low-cost model can succeed in more competitive global markets. Additionally, its ability to maintain cultural relevance and operational efficiency will be key to sustaining its dominance in the food-and-beverage sector.

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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

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