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McDonald's unveils $8.5B growth plan with AI drive-thru and hand-breaded chicken
The fast food chain said it aims for nearly 2.5% systemwide sales growth in 2027, after a rocky second quarter that produced 0.8% US same-store sales growth.
McDonald's laid out a long-term growth strategy at an investor day in Chicago, betting on artificial intelligence, restaurant technology upgrades, and a return to 1990s-style locations to win back customers it says moved to competitors like Burger King. According to Yahoo Finance, the plan arrives after McDonald's reported a rocky second quarter, when US same-store sales rose 0.8% compared with Burger King's 8.5% growth.
McDonald's said it plans to invest $8.5 billion through 2036 to support restaurant tech updates, paired with rent relief and other support for franchisees. It expects to deliver about $5 billion of that investment by 2030, with franchisees encouraged to roll out changes in phases, Yahoo Finance reported.
The strategy includes a remodel cycle for operators every 10 years, along with added costs for redesigning restaurants, which one franchisee operator said is difficult amid higher ingredient, labor, and rent costs and a higher interest rate environment. McDonald's CFO Ian Borden told Yahoo Finance the company views the opportunity as clear, and expects the effort to generate strong returns for both operators and McDonald's.
As part of the menu push, McDonald's is piloting hand-breaded chicken, with the chicken coming frozen, marinated, dipped in batter, and hand-breaded, and with the breading process involving flipping the chicken seven times, according to Yahoo Finance. The company also highlighted a commitment called "Make it Golden," aimed at food, hospitality, and employee training, and said it is targeting nearly 2.5% systemwide sales growth in 2027 before moderating to about 2% by 2030.