McDonald's announces $8.5B turnaround plan with AI drive-thrus and menu shifts

Store modernization and franchisee funding

At its investor day in Chicago on 23 September 2026, McDonald's presented a 10-year turnaround plan named Next, committing $8.5 billion (about 7.2 billion euros) to modernize its global network of 46,000 restaurants. The capital allocation targets kitchen workflow adjustments, enlarged play areas, dedicated delivery lockers, and visible coffee preparation stations. Franchisees generated more than 60% of McDonald's global revenues in 2025, and previous store lobby remodels cost owners up to $450,000. Chief Financial Officer Ian Borden estimated total store-level investments will reach $800,000 per US location, with corporate assistance providing rent relief and capital subsidies. Global Chief People Officer Tiffanie Boyd outlined plans to retrain millions of restaurant workers in what she termed the largest upskilling initiative in company history.

“The winners will be the companies that create more demand and deliver it more efficiently.”

Market reaction and sales trends

Investor sentiment turned cautious following the announcement, as McDonald's shares dropped 5% in afternoon trading, recording their steepest single-day percentage decline in six years before settling after an intraday slide of 6.4%. Ian Borden stated that US comparable sales in the current quarter are on track to be slightly negative, following annual growth of 0.2% in 2024 and 2.1% in 2025. Chief Executive Chris Kempczinski noted that sticky inflation continues to weaken consumer purchasing power across global markets, though he maintained targets to return US sales growth to historical averages of 3% to 4%. The financial pressures on fast food operators were also visible across the wider sector, where a franchisee operating 314 Wendy's outlets filed for bankruptcy protection following earnings contractions.

20240.2%

20252.1%

2024

0.2 %

2025

2.1 %

Data from the article text

Menu expansion into chicken and protein

To manage surging beef expenses, which rose more than 20% in the US and UK over the past two years, McDonald's is accelerating poultry offerings. The chain holds 45% of the beef market and plans to expand its global chicken market share by 1.5 percentage points by 2030, alongside an equivalent gain in beverage share. Tests of hand-breaded chicken across 10,000 restaurants in Asia and Chicago will expand to additional US and Irish locations next year, alongside rollouts of grilled chicken sandwiches, wraps, egg bites, and protein bowls. McDonald's USA President Skye Anderson cited internal data showing 60 million Americans actively seek more daily protein, while 30 million use GLP-1 weight-loss drugs that drive demand for smaller, protein-dense meals.

“This is an opportunity. We need to keep giving them more reasons to make McDonald's their first choice.”

Artificial intelligence and tiered loyalty rewards

Operational automation forms another core element of the strategy, led by Archy, an artificial intelligence drive-thru ordering system that achieves 90% accuracy in English and Spanish. McDonald's plans to expand order accuracy scales from 10,000 restaurants to 20,000 by 2028 while deploying algorithmic shift scheduling and inventory tracking. Concurrently, Chief Marketing Officer Morgan Flatley outlined a transition to a tiered loyalty structure to segment 220 million active members and 150 million lapsed members. Loyalty customers account for 30% of total sales and visit 2.5 times more frequently than non-members, with US participants slated to receive promotions including Uber ride credits and Disney+ subscriptions.

Active members (visit at least every 90 days)220

Lapsed members (inactive for months)150

Active members (visit at least every 90 days)

220 million members

Lapsed members (inactive for months)

150 million members

Data from the article text