A new restaurant chain named CosMc's is being developed by McDonald's.

During its call to discuss its second-quarter profits, the fast-food behemoth provided only a few facts about the initiative.

According to Chris Kempczinski, CEO of McDonald's, "CosMc's is a small format concept with all the DNA of McDonald's, but with its own unique personality."

Beginning in early 2024, the corporation will test CosMc's in a few locations within "a limited geography." At its investor day in December, McDonald's announced it will provide further information on these initiatives.

CosMc, a McDonaldland character that appeared in commercials in the late 1980s and early 1990s, inspired the name of the new company. CosMc is a space alien with a craving for McDonald's meals.

After the comeback of Grimace, another McDonald's mascot, shook its U.S. business, the brand will relaunch CosMc. The fast food restaurant company debuted the Grimace Birthday Meal in June, which came with a vivid purple milkshake.

Grimace and his combination lunch gained widespread popularity on social media, boosting business for American eateries.

Previous attempts by McDonald's to diversify its revenue streams were unsuccessful. It acquired Boston Market and Donatos Pizza in the late 1990s.

After less than ten years, it had sold all three, which had grown into alternatives while McDonald's struggled. Disputes over drive-thrus and franchise ambitions also arose between Chipotle and McDonald's.

(Sources: cnbc.com)