McDonald’s plans to invest about $8.5 billion through 2036 to modernize restaurants, expand technology, and improve operations as part of its previously announced McDonald’s>NEXT strategy.
The company announced the investment Wednesday during its investor day at its Chicago headquarters, outlining plans to provide franchisees with rent relief and capital support while upgrading restaurants and deploying new technologies.
About $5 billion of the investment is expected to be made by 2030.
Restaurant Modernization and Efficiency
McDonald’s said the modernization program will include new delivery-order lockers, more visible coffee preparation areas, larger play spaces and redesigned kitchen layouts.
The company is targeting approximately 250 basis points of gross restaurant-level efficiency improvements in the U.S. and internationally operated markets. McDonald’s estimates those improvements could generate about $100,000 in annual cash flow benefits for the typical U.S. restaurant once the investments are in place.
U.S. franchisees typically spend up to $450,000 over a decade on required restaurant remodels. Under the new plan, franchisees are expected to spend an additional $800,000 over time, with McDonald’s providing part of the cost through rent relief and capital support.
The investments will be phased in based on individual markets and franchisees, Chief Financial Officer Ian Borden said, per The Associated Press.
McDonald’s Expands Use of Artificial Intelligence
Technology will play a significant role in the modernization effort. McDonald’s is deploying ArchIQ, an artificial intelligence system developed with Google that is designed to improve order accuracy and automate tasks such as inventory management and scheduling.
The company is also expanding Archy, its AI-powered drive-thru ordering system. Archy can now take orders in both English and Spanish and has achieved about 90% accuracy in testing, according to McDonald’s.
Borden said Archy could eventually reduce the amount of labor needed for routine tasks by at least 50 hours per week at a typical restaurant. He said the goal is not to reduce staffing but to allow employees to spend more time on hospitality and other tasks, including preparing hand-breaded chicken.
McDonald’s also plans to expand the use of scales that help verify order accuracy. The technology is currently used at about 10,000 restaurants globally and is expected to reach 20,000 restaurants by 2028.
Company Targets Menu and Customer Experience Changes
McDonald’s is also planning changes to its menu as it seeks to attract customers looking for more protein and different portion sizes.
The company said hand-breaded chicken has improved sales and quality ratings at about 10,000 restaurants in Asia and at several locations near Chicago. McDonald’s plans to expand testing of the product to additional U.S. markets and Ireland next year.
The company also plans to introduce grilled chicken sandwiches and wraps in the U.S. and other markets, while testing products such as egg bites and bowls.
Skye Anderson, president of McDonald’s USA, said the company’s research shows that about 60 million Americans are actively seeking more protein in their diets. She also said the company is watching changes in consumer behavior associated with the growing use of GLP-1 weight-loss medications.
McDonald’s plans to continue emphasizing value as well. CEO Chris Kempczinski said lower-income consumers continue to eat fast food but are visiting restaurants less frequently. The company plans to explore additional entry-level price options while continuing to offer meal bundles such as its $5 meal deal.
New Employee Training Program
The company is introducing a systemwide training initiative called Make It Golden, focused on food quality and hospitality.
Beginning October 5, employees will receive additional training designed to provide more hands-on experience with food preparation and customer interactions. McDonald’s Chief People Officer Tiffanie Boyd said the program will focus on helping employees understand food quality and creating more positive experiences for customers.
The initiative is part of the broader McDonald’s>NEXT strategy, which the company says is intended to improve restaurant execution, modernize its system and support future growth.
McDonald’s expects new restaurant openings to contribute about 2.5% to systemwide sales growth in 2027, with that contribution projected to moderate to about 2% by 2030.
The company is also targeting a 1.5-percentage-point increase in market share in chicken and beverage categories by 2030 while maintaining its position in beef.
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