How a Chinese ice cream stall built a 59,000-store empire, surpassed Mcdonald’s in outlets and took its $1 desserts global

A Chinese ice-cream chain has managed to compete with McDonald’s without selling some signature burgers, building big fancy restaurants or catering to rich people. Its recipe for success includes an easy menu, extremely low prices and a business strategy based on franchises that helped become the world’s biggest food & beverage chain measured by outlets.

The success of Mixue has demonstrated one example of what it means to compete with global fast-food giants using the low-cost strategy.

How Mixue turned cheap ice cream into a global empire

Mixue was founded in 1997 by Zhang Hongchao as a shaved ice vendor in Zhengzhou, which is the capital city of Henan Province in China. The breakthrough for Mixue was not an expensive dessert or fashionable coffee shop but making ice cream and drinks affordable.

With the growth of the company through franchising, it has become a giant. As per the annual results of the year 2025, there were 59,823 stores of Mixue in the world at the end of December 2025, out of which 55,356 were located in mainland China. The company entered USA and Kazakhstan in 2025.

What is on Mixue’s menu?

Mixue’s appeal lies in its inexpensive, familiar products rather than an elaborate dining experience. Its menu includes soft-serve ice cream, fruit drinks, tea, milk tea and coffee. The company’s 2024 annual report said its core Mixue products typically cost between 2 and 8 yuan, or around $0.30 to $1.10 at the time.

Its best-known offerings include the classic Mixue ice cream, lemon drinks and strawberry milkshakes. The company says its Kung Fu Lemonade sells more than one billion cups annually.

How much is Mixue worth?

Mixue made its Hong Kong stock-market debut in March 2025, raising approximately $444 million through its initial public offering. Reuters reported that its shares rose sharply on the first day of trading, reflecting strong investor demand.

At the close of its debut, the company’s market capitalization was approximately HK$110.6 billion, or $14.2 billion, according to Yicai Global.

Its latest annual results also show the scale of the business. Mixue reported revenue of 33.56 billion yuan in 2025, up 35.2% from the previous year, while annual profit reached 5.93 billion yuan.

Why does Mixue keep expanding?

The expansion of the chain is directly connected to the attention paid to third-tier cities and cost-conscious consumers. In China, 58% of the chain’s mainland stores were located in third-tier cities and lower at the end of 2025, according to official company data.

This approach has enabled Mixue to establish a huge client base, but at the same time, it makes the company vulnerable to fierce price competition. The success of the chain hinges on keeping costs low and ensuring product consistency.

Frequently asked questions

Is Mixue bigger than McDonald’s?

By store count, yes. Mixue reported nearly 60,000 locations at the end of 2025, exceeding McDonald’s global restaurant network.

Does Mixue operate outside China?

Yes. The company reported 4,467 stores outside mainland China at the end of 2025, with a presence across multiple Asian markets and new entry into the United States and Kazakhstan.