From sweet treats to protein boosts, chains are banking on beverages to drive sales
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From sweet treats to protein boosts, chains are banking on beverages to drive sales

August 19, 2025
08:28 PM
6 min read
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Chains like McDonald's, Starbucks and Dutch Bros are banking on new beverages to drive sales, particularly from Gen Z consumers.

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August 19, 2025

08:28 PM

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In this articleMCD your favorite stocksCREATE FREE ACCOUNTwatch now3:2303:23Fast-food chains make a big bet on beveragesThe ExchangeIf it feels there are a lot of new drinks on restaurant s, it's because there are.Driven by younger consumers who crave customized, cold beverages, chains from Dunkin' to Dutch Bros, Starbucks and McDonald's are answering the call.The number of beverages offered by the top 500 chains has increased by more than 9% in the last year, according to nomic's 2025 Away-From- Beverage Navigator Report

Companies have leaned even more into cold drinks

Offerings specialty coffees and energy drinks have seen the most growth on s over the past two years, as hot coffee and tea beverages on s decline, the market reer reported in July.What's more, consumers are increasingly heading to a chain simply to get an iced coffee or soda

Last year, the primary driver for beverage sales was "getting a pick-me-up," as 22% said that was their most common reason for going, up from 20% in 2023, the data found

Meanwhile, 20% said they bought a beverage to "wash down food." The two occasions for a purchase switched places from the previous year."This shift suggests that consumers may be moving toward more beverage-specific occasions, where beverages are the main driver of the foodservice purchase rather than an add-on to go alongside food

This aligns with the influx of beverage-forward concepts in recent years," the report said.An employee ders a drink to a customer outside a Dutch Bros

Coffee location in Beaverton, Oregon, U.S.Maranie Staab | Bloomberg | Getty ImagesHigher drink sales are key for major players as they seek to reverse slumps in a tough consumer environment

McDonald's U.S. restaurants saw same-store sales growth of 2.5% in its second fiscal quarter, reversing two straight quarters of domestic declines as it leaned into buzzy partnerships and value offerings

But executives cautioned low-income consumers remain challenged

While Starbucks also saw better than expected U.S. sales, they still fell 2% from the prior-year period.Trying to capitalize on the desire for buzzy new drinks will bring its own challenges. nomic forecasts beverage volume will grow 1% through 2029, but the group said it will ly revise that outlook lower

Customers are also more price sensitive, with 61% of consumers who said they noticed price hikes saying they order beverages less often.What Gen Z wantsThe success of many new beverage lines will hinge on Gen Z consumers, who have flocked to customized and sugary drinks.Dunkin' saw its colorful and sweet Refreshers platform hit new record highs in the most recent quarter, with unit sales up more than 30% year-on-year

It will release its fall later this week and lean further into what Gen Z consumers are seeking.The rollout will feature an expansion of pop star Sabrina Carpenter's Daydream Refresher lineup into Mango and Mixed Berry, along with a Cereal N' Milk Latte, featuring a blend of espresso and real cereal milk that ders a "nostalgic marshmallow cereal flavor."The curation of drinks is key for customers — and Gen Z consumers in particular, Dunkin' Chief Marketing Officer Jill Nelson told CNBC

It has to feel unique and special in this environment."On the duct side, it's overwhelmingly cold beverages, customization and bold flavor," Nelson said."And then on the motion side ... when we think Gen Z, this is a generation that grew up on sneaker drops and stories that disappear in 24 hours

So it's all how do you create new news and interesting flavor combinations that you can't really recreate easily at and feel you're in the know when you go to the drive through and order them," she said, adding that the company prioritizes speed and accuracy as customers ask for more customization.The competition will heat up next month as McDonald's enters the beverage category in a more meaningful way

On Sept. 2, McDonald's will launch an expanded market test in 500 restaurants across Wisconsin and Colorado of new drinks that include a "Creamy Vanilla Cold Brew" and "Toasted Vanilla Frappe."A worker hands a drink to a customer at a McDonald's restaurant in Martinez, California, US, on Tuesday, Feb. 4, 2025

David Paul Morris | Bloomberg | Getty ImagesIn addition, the fast food giant will roll out "dirty sodas" and Strawberry Watermelon Refreshers, aimed at Gen Z consumers

McDonald's created the lineup with learnings from its now-shuttered CosMc's concept, which leaned heavily into customized drinks."We're seeing real momentum in beverages, with more people – especially our Gen Z fans – turning to cold, flavorful drinks as a go-to treat," said McDonald's USA Chief Customer Experience and Marketing Officer Alyssa Buetikofer in a release.On McDonald's most recent earnings call, CEO Chris Kempczinski said beverages present a "big opportunity" for the brand."It's growing and it's more fitable than food

So, there's a lot of things to , which is why us as well as, I think, a few of our competitors are also excited this," Kempczinski told analysts

He added that while there are value offerings in the beverage space, you can get a lot of "full margin ducts" that franchisees would not have to discount

The tein playThe new beverage options go beyond the sweet and bold

Chains also aim to win consumers by tapping into health trends.An iced vanilla tein latte from Starbucks.Courtesy: StarbucksAs Starbucks continues its "Back to Starbucks" turnaround plans under CEO Brian Niccol, it is making more changes to the , including a late fourth-quarter launch of tein cold foam

On the company's recent earnings call with analysts, Niccol said the item "taps into what has become one of our most modifiers, cold foam, which grew 23% year over year.""tein Cold Foam with no added sugar is an easy way to add 15 grams of tein to virtually any cold beverage

And customers can also add the flavor of their choice," he said.The coffee giant said it's seeing increases in satisfaction among younger consumers

Niccol told analysts customer value perceptions were near two-year highs in its most recent quarter, driven by gains among Gen Z and millennials, who make up over half of its customer base.It's betting that innovation, coupled with better customer service under its new "Green An Service" strategy, will help to boost .Coffee chain Dutch Bros has leaned into some of those beverage trends to drive strong growth

The chain has been a standout stock performer — up over 22% year-to-date — and saw its same-store sales increase more than 6% in the most recent quarter.CEO Christine Barone said tein milk that launched in 2024 has boosted

But more broadly, unique and surprising toppings and offerings are a way to engage in a tough competitive landscape, she added."I think the key with innovation is to really understand when something might be ready to pop, or something might be of high interest, and then be able to move really fast to execute on it well," Barone told CNBC.watch now12:0012:00Doubling down on hospitality: Starbucks COO on ‘Green An Service’News s— CNBC's Drew Troast contributed to this report