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McDonald's (MCD) is shutting down CosMc's less than two years after it started the beverages chain as a pilot with its first store in Bolingbrook, Illinois.
The burger chain will close the five CosMc's outlets in the United States next month and bring some of the beverage items to its regular restaurants. A companion app for CosMc's will be discontinued.
CosMc's was McDonald's first new restaurant concept in the U.S. in over 60 years, designed to appeal to younger customers. Its offering includes innovative drinks such as Berry Hibiscus Sour-ade and Churro Cold Brew Frappé, which sell for $5.
CosMc's has an alien theme. Its namesake mascot is an orange, six-armed alien character introduced by McDonald's in 1987 as part of its McDonaldland universe.
McDonald's has not revealed how much it spent on the chain, and what it is spending to wind it down.
"The main goal of the CosMc's test was to create a launchpad for learning for the McDonald's System– and the insights we've gathered have given us a whole new way to get closer to our fans," McDonald's said.
"CosMc's-inspired flavors will be landing at McDonald's as part of the upcoming US beverage test."
In March, McDonald's announced a greater focus on its beverage business through a dedicated division, with one of CosMc's key executives transitioning to help lead the new initiative.
The move comes amid rapid expansion and product updates at McDonald's. Earlier this month, it announced plans to hire 375,000 employees across its U.S. outlets.
Meanwhile, its value offerings, such as "Buy One, Add One for $1," and new menu items, including the upcoming McCrispy Strips, Snack Wraps, and Real Lemonade, have drawn consumer interest.
McDonald's shares are up 8.5% this year.
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