- McDonald’s is investing billions in restaurant upgrades, artificial intelligence, and new menu items as part of its NEXT strategy.
McDonald’s Corp. (NYSE: MCD) plans to provide about $8.5 billion in support through 2036 to modernize its restaurants, expand technology, and improve operations. About $5 billion of that support is planned through 2030 through rent relief and capital support for franchisees.
The company operates more than 46,000 restaurants globally. The modernization program includes updated kitchens, delivery lockers, larger play areas, more visible McCafé preparation areas, and other restaurant improvements.
McDonald’s is also expanding its use of artificial intelligence. Its ArchIQ system, developed with Google, is designed to improve order accuracy and automate tasks including inventory management and scheduling. Its Archy drive-thru system can take orders in English and Spanish and has reported accuracy of about 90%. The company plans to expand order-accuracy scales from about 10,000 restaurants to 20,000 by 2028.
McDonald’s Expands Chicken and Other Menu Options
McDonald’s is also expanding its chicken offerings. Hand-breaded chicken has already been introduced at about 10,000 restaurants in Asia, and the company plans to expand testing in the US and Ireland in 2027. The company also plans to introduce grilled chicken sandwiches and wraps and test products including egg bites and bowls.
McDonald’s said it is targeting 1.5 percentage points of market-share gains in both chicken and beverages by 2030, while maintaining its leadership position in beef.
McDonald’s Franchisees Face Additional Investment
US franchisees typically spend up to $450,000 over a decade on required restaurant remodels. Under the new plan, McDonald’s estimates an additional investment of about $800,000 per restaurant over time, with the company providing part of the cost through rent relief and capital support.
McDonald’s estimates the modernization program will produce about 250 basis points of gross restaurant-level efficiency improvements, equivalent to roughly $100,000 in annual cash-flow benefits for the average US restaurant. The company estimates an approximately four-year payback for franchisees after its support.
McDonald’s shares fell nearly 5% Wednesday following the announcement.