McDonald’s announced on Wednesday a plan to invest approximately US$8.5 billion (about A$12 billion) to support its franchisees with rent assistance and capital improvements through 2036. This significant financial commitment forms part of the company’s broader corporate strategy, known as Next, which aims to enhance food quality, customer experience, restaurant operations, and hospitality.
The investment is intended to supplement McDonald’s existing capital expenditure programs and assist franchisees in upgrading equipment and modernizing their outlets. Most McDonald’s restaurants worldwide are franchise-operated, making the chain’s overall performance closely tied to franchisees’ capacity to manage rising costs for food and labor while meeting consumer demand for affordable menu options.
Chief Executive Chris Kempczinski outlined the strategy during an investor day event at the company’s headquarters in Chicago, emphasizing the need for McDonald’s to become the preferred choice for a larger number of customers more frequently. He noted that anticipated customer traffic in key markets is expected to remain flat over the coming years, necessitating efforts to increase market share in order to drive sales growth.
The company is focusing on improving food offerings as a key driver to attract more customers. Among the initiatives under way are trials of hand-breaded chicken in the U.S., as well as the rollout of a new line of crafted sodas and energy drinks infused with Red Bull. Expanding the hand-breaded chicken menu would require many locations to install new kitchen equipment and adapt food-handling practices.
McDonald’s aims to gain an additional 1.5 percentage points of market share in the global beverage and chicken segments by 2030, while maintaining its leading position in the fast-food burger market. New menu items, including grilled-chicken bowls, are also being developed to attract a broader customer base, such as individuals using weight-loss drugs and seeking higher-protein options.
In addition to menu improvements, McDonald’s plans to integrate artificial intelligence technologies in its restaurants. The company is exploring tools such as chatbots to assist workers and voice-AI for drive-through ordering. Early tests indicated that AI ordering systems help free up staff time and enhance customer satisfaction.
The Next strategy also includes what McDonald’s describes as one of its largest-ever pushes to improve hospitality and service levels, scheduled to begin next month. Despite these long-term investments, McDonald’s shares declined by 4 percent in morning trading, as investors weighed the costs against anticipated returns.