McDonald's bets on hand-breaded chicken, AI drive-throughs to fend off Burger King
McDonald's faces a federal class action alleging its algorithmic pricing tool coordinates menu prices across franchises, raising antitrust questions. At the same time, operators want the company to use smaller portions for hand-breaded chicken as tests expand in the U.S. The fast-food chain relies on technology through a five-year partnership extension with Capgemini to modernize operations. Additionally, voice ordering through the ArchIQ operating system built with Google is scheduled to roll out in bundles beginning in 2027.
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- ✓ McDonald's faces a federal class action alleging its AI pricing tool coordinates menu prices across franchises.
- ✓ The fast-food chain is expanding tests of hand-breaded chicken in the U.S., but operators want the company to use smaller portions.
- ✓ Capgemini announced a five-year extension of its strategic partnership with McDonald's to support restaurant operations and digital customer experiences.
- ✓ McDonald's deploys AI through ArchIQ, a restaurant operating system built with Google for drive-thru voice ordering, with rollouts in bundles starting in 2027.
What changed
McDonald's faces a federal class action over its AI pricing tool alongside ongoing franchisee disputes regarding hand-breaded chicken sizes.
Live updates
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McDonald's Faces AI Lawsuits and Franchisee Friction
McDonald's faces a federal class action alleging its algorithmic pricing tool coordinates menu prices across franchises, raising antitrust questions. At the same time, operators want the company to use smaller portions for hand-breaded chicken as tests expand in the U.S. The fast-food chain relies on technology through a five-year partnership extension with Capgemini to modernize operations. Additionally, voice ordering through the ArchIQ operating system built with Google is scheduled to roll out in bundles beginning in 2027.
Why it matters
The fast-food giant contends with legal and operational friction as it attempts to maintain market dominance against rivals like Burger King. Franchisee dissatisfaction over portion sizes and ongoing antitrust litigation over pricing threaten to undermine corporate strategy. Meanwhile, third-quarter results are expected on November 4, 2026, as investors assess customer traffic and pricing pressures.
What is confirmed
- McDonald's faces a federal class action alleging its AI pricing tool coordinates menu prices across franchises.
- The fast-food chain is expanding tests of hand-breaded chicken in the U.S., but operators want the company to use smaller portions.
- Capgemini announced a five-year extension of its strategic partnership with McDonald's to support restaurant operations and digital customer experiences.
- McDonald's deploys AI through ArchIQ, a restaurant operating system built with Google for drive-thru voice ordering, with rollouts in bundles starting in 2027.
- McDonald's is expected to report third-quarter results on Nov. 4, 2026.
What to watch next
- The release of third-quarter financial results on November 4, 2026.
- Developments in the federal class action lawsuit regarding AI-driven pricing strategies.
confidence 100%Sources used for this update (8)
- www.gadgetreview.com — McDonald's Faces Federal Class Action Over AI-Powered Menu ...
- www.restaurantbusinessonline.com — McDonald's franchisees question hand-breaded chicken
- www.youtube.com — McDonald's AI Campaign is GENIUS?! - YouTube
- imagine.ai — McDonald's: Enterprise AI Deployment Profile | Imagine
- www.foodbeverage-outlook.com — Capgemini and McDonald’s Advance AI-Driven Restaurant ...
- help.apiyi.com — Starbucks, McDonald’s, Taco Bell, and Burger King: Which of ...
- openthemagazine.com — McDonald’s Legal Battles: McRib Controversy, AI Pricing, and ...
- www.foodworldnews.com — McDonald's Is Expected to Report Results Wednesday as It ...
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McDonald's Tech and Menu Changes Face Customer and Franchisee Friction
McDonald's is pushing forward with a technology-first strategy and menu updates, even as customers question whether outside advertisements on drive-thru screens degrade the experience. The chain faces operational headwinds as franchisees report that new hand-breaded chicken products feature tough meat and pieces that are too large. These menu and operational hurdles run parallel to financial pressures, with second-quarter revenue growing four percent to $7.10 billion while global comparable sales increased by only one percent. The company holds a Moderate Buy consensus stock rating from Wall Street analysts.
Why it matters
The fast food industry in 2026 has experienced numerous shake-ups involving price increases and recipe reformulations. McDonald's ongoing strategy relies on technology deployments and menu expansions to capture market share and offset slowing traffic. However, friction between corporate plans and operator realities threatens the success of these new initiatives.
What is confirmed
- McDonald's second-quarter revenue grew four percent to $7.10 billion.
- Global comparable sales rose by only one percent.
- Wall Street analysts hold a Moderate Buy consensus rating for McDonald's stock.
Still unconfirmed
- Customers are questioning whether outside ads on drive-thru screens are making visits worse.
- Franchisees report that the new hand-breaded chicken is too large and has tough meat, which could cause the initiative to fail due to product problems and associated costs.
What to watch next
- Franchisee feedback and corporate decisions regarding hand-breaded chicken specifications
- Customer reception to outside advertisements on drive-thru screens
- Subsequent quarterly revenue and global comparable sales performance
confidence 90%Sources used for this update (5)
- financebuzz.com — McDonald’s Just Made a Major Change to Its Drive-Thru - And ...
- finance.yahoo.com — McDonald’s Bets $8.5 Billion on NEXT as Its CEO Warns Traffic ...
- finance.yahoo.com — 9 Biggest Changes To The Fast Food Industry In 2026 (So Far)
- pluang.com — McDonald’s new hand-breaded chicken faces franc... | Pluang
- www.marketbeat.com — McDonald's (MCD) Stock Forecast and Price Target 2026
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McDonald's Tests Hand-Breaded Chicken and AI Drive-Thrus
McDonald's is executing a strategic modernization plan through a four-month operational pilot of hand-breaded chicken products in Dublin, Ireland, alongside the deployment of voice assistant technology globally. This technology initiative includes a five-site United States pilot of a Google-powered artificial intelligence drive-thru system designated as Archy. The multi-front corporate campaign targets market share expansion against competitors like Burger King while addressing labor demands. Additionally, industry observers note that rising beef prices could potentially influence the return of chicken items following the 2020 removal of the grilled chicken sandwich due to low sales.
Why it matters
The fast-food chain continues to adapt its menu and kitchen operations to counter shifting consumer preferences and labor market pressures. The integration of voice ordering technology aims to achieve high accuracy rates while altering customer service models. Meanwhile, menu adjustments reflect ongoing efforts to revitalize poultry offerings after previous items faced elimination from national menus.
What is confirmed
- McDonald's conducted a four-month operational pilot in a small group of Dublin, Ireland restaurants to test a new range of hand-breaded chicken products.
- The fast-food chain deployed voice assistant technology across global markets, including a pilot of a Google-powered AI drive-thru system named Archy at five US sites.
- McDonald's removed its grilled chicken sandwich from the menu in 2020 due to low sales.
Still unconfirmed
- Rising beef prices could bring chicken items back to the menu.
- The Dublin chicken pilot is about much more than introducing a new way of preparing chicken.
What to watch next
- Results from the four-month Dublin hand-breaded chicken pilot
- Performance metrics and expansion plans for the Archy Google-powered AI drive-thru system at US sites
confidence 100%Sources used for this update (3)
- codeandcoffe.com — McDonald's AI: Drive-Thru Tech & Business Impact
- www.foodbible.com — McDonald's shares brand-new menu item, but not everyone can ...
- www.foxnews.com — McDonald's grilled chicken sandwich removed over low sales ...
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McDonald's Pilots Hand-Breaded Chicken and Google AI Drive-Thrus
McDonald's is conducting a four-month operational pilot in a small group of Dublin, Ireland restaurants to test a new range of hand-breaded chicken products. Simultaneously, the fast-food chain is deploying voice assistant technology across global markets to modernize operations and counter labor demands, including a pilot of a Google-powered AI drive-thru system named Archy at five US sites. These menu and technology updates support a broader corporate strategy to expand market share against competitors such as Burger King, though rivals maintain different approaches to customer service.
Why it matters
The corporation previously targeted a global market share increase by 1.5 points by 2030 through expansions in chicken and beverage offerings. Rising competition from dedicated coffee chains, Wendy's, Yum! Brands, and Chick-fil-A creates ongoing operational hurdles and price pressures. While competitors like Chick-fil-A reject voice ordering AI to preserve human hospitality, McDonald's continues to test automated tools alongside menu updates like the return of the Chicken, Bacon and Onion sandwich.
What is confirmed
- McDonald's is using its restaurants in Ireland to test a new range of hand-breaded chicken products via a four-month operational pilot across a small group of Dublin restaurants.
- McDonald's is piloting a Google-powered AI drive-thru system called Archy at five United States sites.
- AI in drive-thru restaurants is standardized across operations involving McDonald's, Wendy's, and Yum! Brands.
Still unconfirmed
- The return of the Chicken, Bacon and Onion sandwich to menu boards nationwide includes a marketing campaign calling for comic strip submissions from artists and illustrators.
What to watch next
- Results from the four-month hand-breaded chicken pilot in Dublin.
- Expansion metrics regarding the Archy Google-powered AI drive-thru system beyond the initial five US sites.
confidence 95%Sources used for this update (4)
- www.ailoitte.com — AI in Drive-Thru Restaurants: 2026 Lessons from QSR Leaders
- www.restaurantonline.co.uk — McDonald’s trials hand-breaded chicken range
- www.thembsgroup.co.uk — McDonald’s pilots Google-powered AI drive-thru system Archy ...
- cde.news — McDonald’s CBO Burger Makes Legendary Comeback
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McDonald's Targets Chicken and AI Tech to Fight Rivals
McDonald's is expanding its menu offerings in chicken and beverages while experimenting with hand-breaded chicken in 200 locations to increase its global market share by 1.5 points by 2030. The fast-food chain is simultaneously deploying voice assistant technology in drive-thrus to modernize and counter labor demands. However, rising competition from dedicated coffee chains and rivals like Chick-fil-A, which rejects voice ordering AI in favor of human hospitality, presents ongoing operational hurdles and risks from price-sensitive consumers.
Why it matters
The fast-food giant built its historical success on speed, consistency, and familiar menu items. Changing consumer habits and aggressive market capture by specialized competitors have forced a strategic pivot toward chicken and automated drive-thrus. This creates a sharp industry split regarding automation and customer service approaches.
What is confirmed
- McDonald's aims to boost global market share in chicken and beverages by 1.5 points by 2030.
- Competitors like Chick-fil-A and dedicated coffee chains are capturing customer spending in the chicken and beverage categories.
- McDonald's is expanding a new voice assistant in drive-thrus.
Still unconfirmed
- Rising competition, price-sensitive customers, and operational challenges pose risks to McDonald's sales growth strategy.
What to watch next
- Expansion or cancellation of the hand-breaded chicken experiment beyond the initial 200 locations.
- Broad rollout metrics for the voice assistant drive-thru technology.
confidence 90%Sources used for this update (5)
- rocketnews.com — McDonald's is leaning into chicken and drinks to grow. New ...
- soyummy.com — McDonald’s Is Going After Its Rivals With Hand-Breaded ...
- www.theglobalicon.com — McDonald’s Bets on Chicken and Drinks to Drive Sales Growth
- www.propeller.co.uk — McDonald’s AI drive-thru | Labs | Propeller
- hungrytimes.com — McDonald’s bets chicken, restaurant improvements will grow ...
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McDonald's Targets Chicken And Drink Growth Via AI
McDonald's is expanding a new voice assistant in drive-thrus and aiming to boost global market share in chicken and beverages by 1.5 points by 2030. Consumer Edge transaction data shows that rivals like Chick-fil-A and dedicated coffee chains are capturing customer spending in these categories. While McDonald's leans heavily into automation to offset labor demands and modernize, competitors take diverging paths. Chick-fil-A explicitly rejects voice ordering AI to prioritize human hospitality, creating a sharp industry split on drive-thru technology.
Why it matters
The fast-food sector faces rising beef prices, prompting major operators to seek new revenue streams in poultry and beverages. McDonald's outlined its strategic growth targets at a September investor day, betting on technology platforms like ArchIQ and the bilingual voice assistant Archy. This automation push contrasts with competitors who rely on traditional human order takers, highlighting an ongoing debate over customer service values.
What is confirmed
- McDonald's aims to gain 1.5 percentage points of global market share in chicken and beverages by 2030.
- Consumer Edge data shows Chick-fil-A and coffee chains gaining customer spending.
- Chick-fil-A has decided to keep human order takers in place instead of adopting drive-thru AI voice ordering.
- McDonald's is expanding a new voice assistant following an earlier attempt.
Still unconfirmed
- What happens next could reshape the entire fast food landscape.
What to watch next
- Updates on consumer spending shifts from Consumer Edge data regarding chicken and beverage categories.
- Performance metrics and expansion timelines for McDonald's new voice assistant in drive-thru lanes.
confidence 90%Sources used for this update (6)
- www.cnbc.com — McDonald's chicken and beverage growth faces rivals - CNBC
- sg.finance.yahoo.com — McDonald’s Bets on AI Drive-Thrus While Chick-fil-A Keeps ...
- capwolf.com — McDonalds Chicken And Drinks Growth Plan Faces Tough Rivalry
- www.salon.com — The AI drive-thru wars aren't really about your order - Salon.com
- www.briefs.co — McDonald's Targets Chicken and Beverage Growth
- www.gate.com — McDonald's Faces Competition in Chicken and Beverage Growth ...
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McDonald's Tests AI Drive-Thrus While Rivals Reject Automation
McDonald's is deploying artificial intelligence drive-thru technology and testing hand-breaded chicken products to counter rising beef prices and modernize its extensive restaurant system. The fast-food chain uses platforms like ArchIQ, its bilingual voice assistant Archy, and IBM-backed tools to achieve drive-thru accuracy. While McDonald's leans heavily into automation to offset labor demands from fresh food preparation, competing chain Chick-fil-A is explicitly rejecting drive-thru AI voice ordering. Chick-fil-A CEO Andrew Cathy states that his company prioritizes human hospitality over automated ordering systems at its drive-thrus.
Why it matters
McDonald's operates a massive global footprint comprising 45,356 restaurants across more than 100 countries as of late 2025, with about 95 percent run by franchisees. The current push toward automation and product tests addresses ongoing economic pressures and changing consumer preferences against competitors. The corporation previously built its success on streamlined food production, dating back to the Speedee Service System introduced by the McDonald brothers in the 1940s and expanded by Ray Kroc after 1955.
What is confirmed
- Chick-fil-A CEO Andrew Cathy stated the chain will not use AI-powered voice-ordering systems at drive-thrus, prioritizing human hospitality over automation.
- McDonald's achieved 85 percent AI drive-thru accuracy with IBM.
- At the end of 2025, the McDonald's system comprised 45,356 restaurants in more than 100 countries, with approximately 95 percent operated by franchisees.
What to watch next
- Broader franchisee adoption rates of the required equipment and preparation upgrades for fresh chicken.
- Measurable changes in drive-thru speed and order accuracy as McDonald's expands its AI technology stack.
confidence 100%Sources used for this update (5)
- en.wikipedia.org — McDonald's - Wikipedia
- www.fool.com — The 2003 crisis: McDonald's fell 70% before its biggest turnaround
- fortune.com — Chick-fil-A keeps human ordering as McDonald’s tests AI | Fortune
- theoutpost.ai — Chick-fil-A Rejects Drive-Thru AI as McDonald's Pushes Automation
- discoverinai.com — McDonald's AI: Drive-Thru Accuracy, Tech & Business Impact
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McDonald's Pilots Hand-Breaded Chicken and AI Tech
McDonald's is launching a test of hand-breaded chicken strips and sandwiches at nearly 200 locations across the United States and Ireland. The upcoming pilot forms part of an $8.5 billion multi-year modernization plan intended to counter rising beef prices and attract customers away from competitors like Chick-fil-A and Raising Cane's. Franchisees participating in the test face required equipment and preparation upgrades costing about $800,000 each. To offset the increased labor demands of fresh chicken preparation, the fast-food chain is leaning on artificial intelligence initiatives, including the ArchIQ platform and its bilingual voice assistant Archy.
Why it matters
The fast-food giant faces pressure from shifting consumer spending habits and rising beef costs, prompting a strategic pivot toward chicken products. Implementing hand-breaded menu items introduces complex kitchen preparation and requires new equipment. To manage this operational friction, the company is pairing the menu overhaul with artificial intelligence automation.
What is confirmed
- McDonald's will test hand-breaded chicken strips and sandwiches in nearly 200 restaurants across the US and Ireland.
- Franchisees are expected to invest about $800,000 each to implement the operational and equipment changes.
- The chicken test is part of an $8.5 billion multi-year investment focused on chicken products.
What to watch next
- Performance outcomes and consumer reception from the 200-restaurant pilot in the US and Ireland
- Decisions regarding a wider commercial rollout of the hand-breaded chicken menu items
- Further deployment milestones for the ArchIQ platform and voice assistant Archy
confidence 100%Sources used for this update (4)
- capitaldigest.com — McDonald's Tests Hand-Breaded Chicken at 200 Locations
- pluang.com — McDonald’s to test hand-breaded chicken in 200 ... | Pluang
- guavy.com — McDonald's Expands Hand-Breaded Chicken Pilot to 200 US ...
- www.diningandcooking.com — McDonald’s prepares test of hand-breaded chicken tenders ...
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McDonald's Unveils $8.5 Billion Modernization Plan Focused on AI
McDonald's announced an $8.5 billion modernization plan through 2036, centered on artificial intelligence, automated kitchens, loyalty perks, and new menu items like hand-breaded chicken. The strategy aims to reverse slumping customer traffic and counter rising costs. As part of the overhaul, the company introduced the ArchIQ platform, featuring a voice assistant named Archy that handles English and Spanish drive-thru orders. Testing for the AI assistant expanded to more than a dozen US locations and Australia following initial trials, while hand-breaded chicken items are slated for testing in nearly 200 restaurants next year.
Why it matters
The fast food giant is shifting its strategy to address changing consumer preferences, including protein-focused trends and inflation pressures affecting traffic. The modernization plan was detailed during the company's first investor day in about three years in Chicago. Despite the major investment aimed at long-term restaurant efficiency, the announcement initially pushed stock prices lower amid immediate investor concerns over traffic.
What is confirmed
- McDonald's is spending $8.5 billion on changes including an AI drive-thru, automated kitchens, and a new chicken menu.
- The modernization strategy runs through 2036 and is backed by franchisee investment.
- The ArchIQ platform includes a voice assistant nicknamed Archy that takes orders in English and Spanish.
- McDonald's is preparing to test hand-breaded chicken menu items in nearly 200 restaurants across the US and Ireland next year.
Still unconfirmed
- Investors sent stock down 6.5% amid traffic concerns following the modernization plan announcement.
What to watch next
- Expansion of the ArchIQ voice assistant to additional international and domestic restaurant locations
- Results from the planned 200-restaurant test of hand-breaded chicken items in the US and Ireland
- Further financial reports detailing the impact of the $8.5 billion modernization spending on company stock and traffic
confidence 90%Sources used for this update (12)
- economictimes.indiatimes.com — McDonald’s latest news: McDonald’s is spending $8.5 billion on changes: AI drive-thru, automated kitc....
- stockanalysis.com — McDonald's (MCD) Transcript: Investor Day 2026 - Stock Analysis
- capitaldigest.com — McDonald's $8.5B AI Plan Sends Stock to 4-Year Low
- sg.finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
- finance.yahoo.com — McDonald’s bets $8.5 billion on a sweeping restaurant ...
- www.unilad.com — McDonald's announces huge '$8.5B' overhaul with pickup ...
- www.newsweek.com — McDonald’s Is Spending $8.5 Billion. 7 Changes Customers ...
- www.uniladtech.com — McDonald's drops $8.5 billion tech plan to stay ahead of ...
- fortune.com — McDonald’s is exploring an $8.5 billion bet on a fast food ...
- thespinoff.co.nz — All 33 malls in Auckland ranked from worst to best | The Spinoff
- nypost.com — McDonald’s prepares test of hand-breaded chicken strips ...
- drawpie.com — McDonald's Drive-Thru: Menu, App & New AI Ordering
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McDonald's bets on hand-breaded chicken, AI drive-throughs
McDonald's is investing $8.5 billion through 2036 to modernize and regain market share, focusing on hand-breaded chicken and AI-powered drive-throughs to compete with Burger King and KFC. The fast-food giant aims to address rising beef prices and attract Gen Z customers who prefer fried chicken. McDonald's also launched a media network with drive-thru ads, piloted at 450 US restaurants.
Why it matters
The fast-food industry is highly competitive, with McDonald's facing challenges from rivals like Burger King and KFC. Rising beef prices and changing consumer preferences, particularly among Gen Z, have impacted McDonald's sales. The company's modernization plan includes restaurant upgrades, staff training, and investments to help franchisees drive growth.
What is confirmed
- McDonald's is investing $8.5 billion through 2036 to modernize and regain market share.
- The company is focusing on hand-breaded chicken and AI-powered drive-throughs to compete with Burger King and KFC.
- McDonald's launched a media network with drive-thru ads, piloted at 450 company-owned US restaurants.
- The media network business aims to eventually reach $1 billion.
What to watch next
- McDonald's traffic recovery and sales performance
- Progress of the media network expansion
- Impact of AI drive-throughs on customer experience and sales
confidence 85%Sources used for this update (7)
- finance.yahoo.com — McDonald's launches media network with drive-thru ads
- finance.yahoo.com — McDonald's bets on hand-breaded chicken, AI drive-throughs to fend off Burger King
- cashwalklabs.io — McDonald's bets on hand-breaded chicken, AI drive-throughs to fend off Burger King | Global Cashwalk
- www.hexeba.com — McDonald's Bets Big on Hand-Breaded Chicken & AI Drive-Thrus ...
- www.4n.net — McDonald’s Expands Chicken Menu, Adds AI Drive-Throughs Amid ...
- finance.yahoo.com — McDonald’s Changing Its Look, Implementing Hand-Breaded ...
- tradersagency.com — McDonald's Commits Up to $8.5 Billion Through 2036 to Fund ...
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McDonald's Plans $8.5 Billion Upgrade to Fight Rivals
McDonald's is launching an $8.5 billion modernization plan through 2036, betting heavily on hand-breaded chicken and AI drive-throughs to fend off competitors like Burger King and KFC. The fast-food giant aims to win back diners as beef prices soar and Gen Z flocks to fried chicken. Alongside restaurant upgrades and staff training, the massive financial commitment includes multibillion-dollar investments to help franchisees drive growth. Despite these strategic moves, the company warns that traffic recovery may lag behind its modernization efforts.
Why it matters
The sweeping modernization reflects intensifying competition within the fast-food industry as shifting consumer preferences and rising commodity costs strain traditional menus. By pivoting toward new protein-focused options and automated technology, the corporation attempts to secure its market share against aggressive rivals. The long-term investment signals an urgent push to revitalize its physical footprint and customer experience following a challenging financial year.
What is confirmed
- McDonald's plans an $8.5 billion modernization by 2036.
- The company is betting on hand-breaded chicken and AI drive-throughs.
- McDonald's warned that traffic recovery may lag.
- The initiative includes a multibillion-dollar investment to help franchisees.
What to watch next
- Progress on the rollout of AI drive-through technology
- Actual customer traffic recovery metrics
- Franchisee adoption rates of the multibillion-dollar support program
confidence 100%Sources used for this update (9)
- Yahoo Finance — McDonald's has 1 shot to turn around its dreadful year
- ft.com — McDonald’s bets on chicken to win back diners as beef prices soar
- WSJ — McDonald’s Pledges Multibillion-Dollar Investment to Help Franchisees
- CNBC — McDonald's will spend big on restaurant upgrades, training to drive growth
- apnews.com — McDonald’s plans $8.5 billion modernization by 2036
- Yahoo Finance — McDonald's bets on hand-breaded chicken, AI drive-throughs to fend off Burger King
- The Guardian — McDonald’s to take on KFC and rivals as Gen Z flock to fried chicken
- Reuters — McDonald's warns traffic recovery may lag; unveils $8.5 billion investment plan
- WHEC.com — McDonald’s bets $8.5 billion on a sweeping restaurant makeover and new protein-focused menu
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