McDonald’s is planning to invest $8.5 billion through 2036 to help Franchise Operations modernize restaurants, adopt new technologies, and improve day-to-day operations as the fast-food giant looks to strengthen its competitive position. Around $5 billion of the planned investment is expected to be deployed by 2030 through a combination of rent relief and capital support.
The spending forms a central part of McDonald’s new “McDonald’s Next” strategy, which aims to make the company a first choice for more customers while building on its existing global growth plan, “Accelerating the Arches,” introduced in 2020.
Chairman and CEO Chris Kempczinski said the company’s scale, customer data, brand loyalty, and operational capabilities provide a strong foundation for responding to changes in the restaurant industry.
Four Areas of Focus
McDonald’s first introduced the strategy, initially referred to as “Restaurant Next,” at its convention in June and later discussed it during its second-quarter earnings call. The company has now outlined four key areas that will shape the initiative.
Menu Next will focus on improving food taste and quality through better execution and menu innovation. The company hopes these changes will encourage customers to visit more frequently.
Consumer Next will emphasize personalized customer relationships, using insights and digital capabilities to increase engagement and drive additional visits.
Restaurant Next will target greater productivity by simplifying operations, improving execution, and modernizing restaurant layouts. The company also plans to expand the use of ArchIQ, its Google-powered artificial intelligence operating system, which is designed to assist with drive-thru orders and restaurant back-end management.
People Next will focus on employees, providing them with tools and capabilities intended to improve hospitality and create a stronger experience for customers.
Franchise Operations Market Share and Margin Targets
Through the planned investments, McDonald’s aims to capture an additional 1.5 percentage points of market share in the chicken and beverage categories by 2030 while maintaining its leading position in beef.
The company also expects the strategy to improve restaurant economics. McDonald’s is targeting Franchise Operations margins in the low-to-mid 50% range by 2030, supported by a 2.5% reduction in costs and an estimated additional $100,000 in annual cash flow.
Systemwide sales are projected to rise 2.5% next year before moderating to around 2% growth by 2030. The company sees modernization, technology, employee support, and customer-focused improvements as key drivers of its next phase of growth.
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