CHICAGO, IL — McDonald's (MCD) is making a long-term bet on artificial intelligence, hand-breaded chicken, and a return of 90s-style restaurants to regain customers who left for other chains, like Burger King. At its investor day in Chicago, the fast food giant unveiled a new set of ambitious goals and investments as part of its growth plan, following a rocky second quarter that resulted in 0.8% US same-store sales growth versus Burger King's whopping 8.5% growth. McDonald's said it plans to invest $8.5 billion through 2036 to support restaurant tech updates with rent relief and capital.
It intends to deliver roughly $5 billion of that investment by 2030. Franchisees are encouraged to adopt the plan in phases. One franchisee operator told Yahoo Finance they are skating on thin margins with higher ingredient, labor, and rent costs, making another costly redesign difficult, especially in a high-interest-rate environment.
Operators will have to pay to update the restaurants' look and feel as part of a remodel cycle expected of them every 10 years, per McDonald's. "You start with the opportunity, which we think is really clear and compelling," McDonald's CFO Ian Borden told Yahoo Finance. "We think it's going to provide a really strong return for our operators and for McDonald's." The strategic growth plan aims to drive nearly 2.5% systemwide sales growth in 2027, which would then moderate to about 2% by 2030.
It remains to be seen whether the plan can turn around McDonald's stock as well. McDonald's shares have struggled to entice investors to take a bite this year, declining 18% year to date, compared to a 4.6% gain for Burger King's parent company stock, Restaurant Brands International (QSR), and 13% gain for the S&P 500 (^GSPC). Part of the strategy is a commitment called "Make it Golden," which doubles down on food, hospitality, and employee training.
After Burger King overhauled its chicken nugget recipe, McDonald's is doing something similar by piloting hand-breaded chicken. The chicken comes frozen, marinated, dipped in batter, and hand-breaded, Jacques Mignault, McDonald's Global Chief Restaurant Officer, told Yahoo Finance. The secret is to flip the chicken seven times.
McDonald's is targeting a 1.5% share of the chicken category and expects to add more US restaurants to the pilot in early 2027. Mignault said the new chicken is "actually beating the competition from a taste and quality standpoint" in Asian markets. He added that the company has also started testing bone-in wings.
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