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McDonald's pledges $8.5B for franchise restaurant upgrades through 2036
The Restaurant > NEXT plan aims to boost efficiency so the average U.S. restaurant gains about $100K in annual cash flow and looks to repay franchisee investments in roughly four years.
McDonald's laid out a growth strategy at an investor day in Chicago that includes an $8.5 billion package of partnering support for franchisees through 2036, with about $5 billion allocated through 2030, according to a release covered by Bisnow.
The Restaurant > NEXT pillar is focused on simplifying operations, modernizing restaurant design and deploying ArchIQ, an operating system powered by artificial intelligence, with the company saying the effort is intended to support restaurant modernization, technology rollout and operational improvements.
McDonald's expects efficiency gains to increase annual cash flow by about $100K for the average U.S. restaurant, and it projects the initiative will return franchisees' investments in roughly four years.
The company also said it is trying to reverse slowing visits at U.S. restaurants, noting that while the average check rose in the second quarter, domestic restaurant traffic declined, and it projected global systemwide sales growth from restaurant openings at 2.5% in 2027 before falling to 2% by 2030.