McDonald’s announced Wednesday that it will spend $8.5 billion over the next decade to modernize its global restaurant network. The plan, presented by Chairman and CEO Chris Kempczinski at an investor meeting in Chicago, focuses on technology, menu innovation and value for low‑income families.
Technology upgrades to boost efficiency
The fast‑food giant is rolling out its ArchIQ system, developed with Google, to improve order accuracy and automate inventory and scheduling tasks. The AI‑enabled drive‑thru platform, called Archy, now takes orders in both Spanish and English with a 90 % accuracy rate and could free up at least 50 labor hours per week at a typical location, according to CFO Ian Borden. While the company says the goal is not to cut staff, employees will be able to focus more on hospitality and food preparation.
Additional technology upgrades include lockers for delivery orders, larger play areas, more visible coffee stations and new kitchen layouts. Scales that help ensure order accuracy are already in use at 10,000 restaurants worldwide and will be installed in 20,000 locations by 2028.
Menu changes aimed at protein‑seeking diners
McDonald’s is expanding hand‑breaded chicken testing, which has been running in 10,000 Asian restaurants and a handful of Chicago‑area sites, to additional U.S. markets and Ireland next year. The company also plans to introduce grilled chicken sandwiches and wraps, and to experiment with egg bites and bowls to meet demand for higher‑protein, portion‑controlled meals.
Skye Anderson, president of McDonald’s USA, noted that roughly 30 million Americans are now using GLP‑1 weight‑loss drugs and are looking for smaller, protein‑rich meals. Company research suggests 60 million Americans actively seek more protein in their diets, presenting a growth opportunity.
Commitment to value for families
Despite the heavy investment, McDonald’s says it remains focused on affordable options for low‑income households, defined as U.S. families earning $45,000 or less annually. Kempczinski highlighted the success of the $5 meal deal and said the company is exploring entry‑level pricing on a basic menu, similar to its European model.
Franchisees typically spend up to $450,000 per decade on required remodels. Under the new plan, they will be asked to invest an additional $800,000 over time, with McDonald’s providing rent relief and capital support to offset part of the cost.
Financial outlook
Borden said the modernization investments will be phased in as markets and individual franchisees are ready. Once completed, the efficiency gains are projected to deliver roughly $100,000 in annual cash‑flow benefits per U.S. restaurant, some of which can be reinvested back into the location.
Shares fell 5 % in afternoon trading, the steepest decline in six years, as investors reacted to the sizable capital outlay. Kempczinski emphasized that the company’s long‑term growth depends on creating demand and delivering it efficiently, especially as overall fast‑food traffic remains flat.
Original reporting: KTBS 3 (Shreveport) — read the source article.
