McDonald’s plans $8.5 billion investment in restaurants, chicken and AI through 2036

# McDonald’s Plans $8.5 Billion Franchisee Investment Through 2036 as It Expands AI and Chicken Strategy

McDonald’s is planning approximately $8.5 billion in franchisee support through 2036 as the fast-food giant seeks to modernize its restaurants, improve operations and attract customers through menu innovation, artificial intelligence and employee training.

The company outlined the investment as part of its McDonald’s > NEXT strategy during its investor day in Chicago on September 23. The long-term plan is designed to build on the company’s earlier Accelerating the Arches strategy while placing greater emphasis on restaurant productivity, customer experience and market-share growth.

McDonald’s expects approximately $5 billion of the franchisee support to be provided through 2030, using a combination of rent relief and capital support. The company said the funding will help franchisees accelerate restaurant modernization, technology deployment and other operational improvements.

The planned restaurant upgrades include redesigned kitchens, more efficient drive-thru operations, delivery lockers and more visible coffee-preparation areas. Customer-facing spaces will also receive updates, including the return of smaller PlayPlace areas featuring traditional playground elements.

McDonald’s estimates that the restaurant initiatives could produce about 250 basis points of gross restaurant-level efficiency improvements. The company estimates that this could translate into roughly $100,000 in annual cash-flow benefits for the average U.S. restaurant.

The company expects franchisees to see an approximately four-year payback on the investments after McDonald’s contribution, although the actual results will depend on individual restaurant and market conditions.

The strategy also places greater emphasis on chicken as McDonald’s seeks to capture additional market share beyond its established strength in beef.

The company is testing hand-breaded chicken in the United States and plans to expand testing to additional U.S. and Ireland restaurants in 2027.

McDonald’s has set a target of gaining 1.5 percentage points of market share in both chicken and beverages by 2030 while maintaining its position in beef. The company plans to expand McNuggets flavors and sauces, McCrispy products and McWings, while also testing grilled chicken sandwiches and wraps.

The emphasis on chicken reflects a broader shift in the restaurant industry, where fast-food chains are competing more aggressively for consumers seeking variety and value.

McDonald’s is also placing greater emphasis on beverages, another category it views as an opportunity for additional customer visits and sales growth.

Artificial intelligence is another major component of the NEXT strategy.

McDonald’s plans to expand deployment of ArchIQ, its generative-AI-enabled restaurant system developed with Google. The technology is intended to help simplify restaurant operations and improve areas such as order accuracy, inventory management and scheduling.

The company is also exploring additional AI applications across kitchens and drive-thru operations as it works to use technology to make restaurants easier to operate.

McDonald’s said scales designed to improve order accuracy are already deployed at approximately 10,000 restaurants worldwide, with plans to reach about 20,000 locations by 2028.

The company is pairing technology investments with a new employee initiative called “Make It Golden,” a multiyear program designed to improve food execution and hospitality across its restaurant system.

The initiative is intended to create a more consistent customer experience by emphasizing food quality, service and operational execution.

McDonald’s said NEXT builds on technology and infrastructure developed under Accelerating the Arches, including common technology platforms and a unified enterprise data foundation spanning its global restaurant network.

The company now has more than 46,000 restaurants and serves more than 70 million customers each day, according to its investor-day materials.

The latest strategy comes as McDonald’s faces continued pressure to increase customer traffic. Reuters reported that the company expects industrywide traffic in key markets to remain relatively flat while inflation remains elevated.

McDonald’s is therefore attempting to address the challenge through several channels at once, combining restaurant renovations, technology, new menu offerings and employee training rather than relying solely on discounts and promotions.

The company has also established longer-term financial targets under NEXT, including an operating margin in the low-to-mid 50% range by 2030 and free-cash-flow conversion in the mid-to-high 80% range.

The strategy represents a significant investment in McDonald’s franchise network at a time when restaurant operators are dealing with higher costs and changing consumer expectations.

By providing financial support to franchisees while deploying AI and redesigning restaurants, McDonald’s is seeking to improve both the economics of individual locations and the experience customers encounter when they visit.

The effectiveness of the strategy will ultimately depend on how quickly the investments translate into improved restaurant operations, customer traffic and sustained growth across McDonald’s markets.