CHICAGO, Illinois: McDonald's is closing its experimental beverage spinoff, CosMc's, less than two years after launching the standalone concept. The company confirmed late last week that all five CosMc's locations—including those in San Antonio, Texas—will close in late June.

Though the closures mark the end of the dedicated drink venture, McDonald's isn't abandoning its beverage ambitions. The fast-food giant said it will test select CosMc's-inspired drinks in hundreds of its 14,000+ U.S. restaurants.

CosMc's was launched in 2023 as a pilot to explore the "fast-growing beverage space," which McDonald's says it has a "right to win." The company emphasized that the standalone stores were intended to test new flavors and technologies without interfering with existing restaurant operations.

While McDonald's did not specify which drinks might be integrated into its broader menu, the move aligns with a wider internal push. In March, the company announced the formation of a dedicated team to develop new beverages across its U.S. system.

All of CosMc's locations will close in a phased process, and its mobile app will also be discontinued.

Restaurant consultant John Gordon said the beverage business remains a relatively untapped opportunity for McDonald's compared to competitors.

McDonald's has historically been very quiet in the beverage space, Gordon said, noting that other fast-food chains have found success with complex, high-margin drinks that often outperform food items in profitability.