McDonald's said at its investor day that it plans to make major investments in restaurant upgrades, technology and long-term employee training as part of its new growth strategy, McDonald's > NEXT.
The push comes as the company tries to revive momentum in the U.S. after sluggish sales, while consumers strained by years of elevated inflation are visiting restaurants less often. CEO Chris Kempczinski told CNBC that McDonald's is aiming to win more diners even as inflation and flat overall restaurant traffic are expected to persist.
Investors gave the plan a cool reception, with McDonald's shares falling 5% in morning trading.
Remodels and AI-powered restaurant operations
A central piece of the strategy is restaurant remodeling, which McDonald's typically requires franchisees to undertake roughly once a decade. The updated design includes refreshed PlayPlaces, which had been phased out previously, more open kitchen layouts and greater visibility into how McCafe drinks are prepared.
Alongside the redesign, the company introduced Restaurant > NEXT, a program focused on equipment, technology and operations. A key element is ArchIQ, an artificial intelligence-powered operating system for restaurants. McDonald's said “Archy” can take customer orders in English and Spanish, saving about 50 labor hours per week. Other ArchIQ tools are designed to manage inventory, schedule shifts and use scales to check order accuracy.
Chief Financial Officer Ian Borden said AI-enabled revenue management and Archy's suggestive-selling tools should help lift the average check over time.
Up to $8.5 billion in franchisee support
The upgrades will require significant spending from franchisees, but McDonald's said it will also provide support through rent relief and direct capital. Through 2036, the company plans to spend as much as $8.5 billion to speed up franchisee investment in the restaurant improvement plan.
About $5 billion of that support is expected to be deployed through 2030. In addition, McDonald's projects $1.5 billion to $2 billion in capital spending from 2027 through 2030 to accelerate NEXT, on top of its usual roughly $3 billion in annual capital expenditures. In 2025, the company reported $3.4 billion in capital expenditures.
A standard lobby remodel for a U.S. drive-thru restaurant typically costs about $400,000 to $450,000 and is paid for by the franchisee. Borden said the added investments tied to the plan would be incremental to those remodel costs and run about $800,000 per restaurant, although McDonald's will help fund part of that amount. The spending will be phased in as technology, kitchen and operational upgrades become available.
Executives argue that the investments should pay off. McDonald's estimates that efficiency gains will increase annual cash flow by roughly $100,000 for the average U.S. restaurant, with franchisees recovering their investment in about four years. Average annual U.S. franchisee cash flow now stands at about $500,000, nearly 50% higher than in 2019.
At the same time, the company said it wants to cut costs in other areas, though it did not provide details. By 2030, McDonald's is targeting an operating margin in the low-to-mid 50% range, up from 46.1% in 2025.
Part of that margin expansion is expected to come from lower general and administrative costs. By 2030, the company expects G&A to account for about 1.9% of systemwide sales, versus a current 2026 forecast of 2.2%.
McDonald's is also planning to build its own media network by selling advertising to other businesses on digital drive-thru displays. Executives said the business could eventually reach $1 billion in size. Testing has already begun over the last month at 450 company-owned restaurants.
The company is also looking to global expansion for growth. New restaurant openings are expected to contribute about 2.5% of systemwide sales growth next year, before easing to around 2% by 2030.
Chicken, beverages and menu expansion
In recent years, McDonald's has increasingly relied on categories beyond its core beef business—especially chicken and beverages—to drive growth. By 2030, the company wants to increase its global market share in both categories by about 1.5 percentage points each.
According to global chief restaurant experience officer Jill McDonald, Chicken McNuggets already generate nearly $15 billion in system sales, McChicken brings in $4 billion and McCrispy menu items account for $2.5 billion. Altogether, the chain holds about 20% of the $130 billion global chicken category.
To increase that share, McDonald's plans to introduce hand-breaded chicken items, with pilot launches coming soon in U.S. restaurants. The menu pipeline also includes new grilled chicken sandwiches, wraps, and new flavors and sauces for Chicken McNuggets.
The company also wants a larger share of the $230 billion global beverage market, where it currently holds roughly 10% and ranks as the world’s second-largest coffee player. Earlier this year, McDonald's expanded its U.S. drink lineup with refreshers, crafted sodas and energy drinks, and it now plans to launch more beverages in international markets. U.S. restaurants will also receive new espresso machines and more customization options using alternative milk.
McDonald's U.S. President Skye Anderson said the company is also exploring bowls, grilled chicken and egg bites to broaden its protein-forward offerings across breakfast, lunch and dinner.
Some of that innovation is tied to the growing use of GLP-1 drugs. Investors have long worried that the medications could hurt McDonald's sales, but executives said they are confident the company will retain those customers. Anderson said 84% of households with at least one GLP-1 user still visit McDonald's.
At the same time, the chain is not stepping away from burgers. Jill McDonald said McDonald's still controls about 40% of the $50 billion global beef category. The company plans to roll out its fresh beef Quarter Pounders in more markets outside the U.S. and continue improving burger quality, building on the “Best Burger” changes introduced in 2024.
To support those goals, McDonald's will also launch Make It Golden, a multiyear employee training program aimed at improving consistency, quality and customer service. Anderson said the company still falls short on consistent execution. The program will begin rolling out on Oct. 5, the 124th birthday of Ray Kroc.
