McDonald’s to spend $8.5B on revamping restaurants, tech and franchise support

Live updates

1. 1h ago

   McDonald's Announces $8.5 Billion Modernization Plan Through 2036

   McDonald's will invest $8.5 billion by 2036 to modernize more than 46,000 restaurants and support franchisees. The strategy focuses on restaurant upgrades, employee training, and technological advancements, including AI-powered drive-throughs. To increase market share and attract Gen Z customers, the company is introducing a protein-focused menu featuring hand-breaded chicken to compete with rivals like KFC and Burger King. This long-term growth plan aims to improve efficiency and productivity amid a challenging economic environment characterized by high inflation and stagnant customer traffic.

   Why it matters

   The investment comes as the company faces rising competition in the fried chicken segment and a general decline in foot traffic. CEO expectations suggest that inflation and lackluster traffic are persistent issues. This strategy represents a shift toward higher-tech operations and menu diversification to regain customer interest.

   What is confirmed

   • McDonald's plans to spend $8.5 billion on modernization by 2036.
   • The investment covers restaurant upgrades, technology, and franchisee support.
   • The productivity makeover will affect more than 46,000 restaurants.
   • The company is introducing hand-breaded chicken to compete with rivals.
   • The strategy includes the implementation of AI drive-throughs.

   Still unconfirmed

   • McDonald's shares fell following the unveiling of the upgrade plan.
   • The company is specifically targeting Gen Z customers with its fried chicken push.

   What to watch next

   • Quarterly earnings reports showing the impact of the $8.5 billion spend on profit margins.
   • Rollout dates for AI drive-through technology across the 46,000 locations.
   • Customer traffic data following the introduction of the hand-breaded chicken menu.
   Sources used for this update (18)

   1. WSJ — McDonald’s Pledges Multibillion-Dollar Investment to Help Franchisees
   2. CNBC — McDonald's will spend big on restaurant upgrades, training to drive growth
   3. apnews.com — McDonald’s plans $8.5 billion modernization by 2036
   4. Nation’s Restaurant News — Inside McDonald's massive 'Next' evolution strategy
   5. Yahoo Finance — McDonald's bets on hand-breaded chicken, AI drive-throughs to fend off Burger King
   6. The Guardian — McDonald’s to take on KFC and rivals as Gen Z flock to fried chicken
   7. Fox Business — McDonald’s to spend $8.5B on revamping restaurants, tech and franchise support
   8. Pittsburgh Post-Gazette — More tech and hand-breaded chicken coming to McDonald's as part of $8.5 billion modernization push
   9. axios.com — McDonald's unveils $8.5B turnaround strategy
   10. CNBC — McDonald's CEO expects high inflation, lackluster traffic are here to stay
   11. Yahoo Finance — McDonald’s Unveils 10-Year Growth Plan to Drive Market Share Gains and Efficiency. Should Investors Be Concerned About the $8.5 Billion Price Tag?
   12. franchisetimes.com — McDonald’s Plans to Spend $8.5B to Help Its Franchisees as Competition Rises
   confidence 95%