McDonald's wants to sell you a Dirty Dr. Pepper

Author

Andy Moore
April 17, 2026

Hello!

This week we’re talking:

  • PopUp Bagels’ massive valuation step-up

  • McDonald’s is making a major change to its drink menu

  • Jersey Mike’s incredibly steady growth

Read on…

3 Numbers

2,179

Number of locations Jersey Mike’s added in the past decade, a 208% increase in unit count. Annual unit growth has been remarkably steady over that time period — roughly 10 to 14% almost every year. Per the newly updated FDD, average sales per Jersey Mike’s location were around $1.36 million in 2025.

$300 million

Valuation of 30-unit PopUp Bagels after a reported investment from Tiger Global. That figure is five times higher than where the chain was quoted in October of last year. (And is higher than the market cap of a few +2000 unit chains.) PopUp has signed over 300 franchise agreements and plans to have 100 units open by the end of 2027.

600

Units that Church’s Texas Chicken plans to open in China, with its first location coming to Shanghai this summer. The concept — branded as Church’s Chicken domestically and Texas Chicken elsewhere in the world — is now in 27 global markets. 80% of its development pipeline is pegged for international units.

The Big Story

McDonald’s is expanding its McCafé line to include refreshers and crafted sodas. Via the New York Times:

In May, the fast-food giant plans to release a line of brightly hued, fruit-flavored refreshers along with what is known as a crafted or dirty soda — like Sprite mixed with blueberry syrup and topped with whipped foam.

For the uninitiated, refreshers have two essential components: They are cold and bright. “They come in vibrant colors,” said Alyssa Buetikofer, the chief marketing and customer experience officer for the 14,000 McDonald’s locations in the United States. “They are very Instagrammable.”

After that, anything goes. They might contain a lemonade or green tea base. Or not. They could have sparkling water. Or not. They may contain coconut milk. Or not. And they may be caffeinated. Or not.

But for McDonald’s, refreshers are more than just a pretty drink. They are a way to lure customers, particularly members of Gen Z and Gen Alpha, into restaurants. It’s also a way to extend their menu options outside typical mealtimes.

“It’s clearly a very attractive category, and we’re not the only ones who see it,” said Charlie Newberger, the head of beverages and desserts at McDonald’s. “It is large and growing and appeals to younger consumers.”

Arguably, McDonald’s has been signaling that it’d launch this product line since they shut down CosMc’s. The spinoff concept — which sold coffee and specialty drinks in 5 locations before shuttering permanently in 2025 — ultimately created the basis for a 500-store test last year of a crafted beverages menu. The test was successful, and now franchisees are investing thousands of dollars in equipment so they can mix the new drinks.

It feels like I’ve been posting a lot about McDonald’s lately, but not without good reason — even as the restaurant industry has grown more fragmented, their scale is still unfathomable. (Two fun supply-chain facts I like to drop at dinner parties: they buy about 2% of all the beef in the U.S., more than any grocery store; they’re also the main reason why Russet Burbank potatoes have become the standard potato in American agriculture — they’re used in most of their fries.)

So even though they’re rarely a first mover, when McDonald’s does make a move, it tends to make a… splash. Even though refresher beverages are already on the menus of many major chains — you can now pick up a Dragonfruit Berry Aqua Refresca at Taco Bell, and they’re a $2 billion a year business at Starbucks — the fact that McDonald’s is reportedly set to release a Dirty Dr. Pepper and a collaboration with Red Bull would indicate refreshers and dirty sodas are here to stay. Their rise has been swift — the dirty soda OG Swig was founded just 16 years ago — but expect even more out-there flavor combinations as every chain tries to break through the noise.

In the Headlines

Name That Chain!

You’ve got three guesses to name this week’s mystery chain:

  • Started as a single location in 1961 in the Pacific Northwest and known for a cult following despite relatively slow unit growth

  • Mostly sells a core quick-service menu item, but also carries items like a Black Cod Sandwich and Fried Asparagus

  • Its locations use 100% wind power in its locations

Find the answer at the bottom of the email…

Power Moves

Here are some notable C-suite moves from the past week:

What’s New at FS Supply

We recently began working with a chain to convert their line of foam cups to crystal-clear PET.

This was top of mind a couple of days ago when I grabbed a smoothie — served in a foam cup — from a place that will remain nameless. The guy in front of me gripped his cup a little too hard and wore half his drink home. This is shockingly easy to do with foam.

Foam hides your product, dents under a firm grip, and increasingly signals "we haven't updated this in twenty years." PET shows off what's inside, holds its shape, and helps do the marketing for you.

If you're running a concept where the drink is the product — smoothies, shakes, iced coffee, lemonade — the cup is doing more work than most operators give it credit for.

Thanks for reading! I’ll see you next week.

NAME THAT CHAIN ANSWER: Burgerville

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