McDonald’s announced Wednesday that it will invest $8.5 billion over the next decade to modernize its restaurants worldwide.
Fast-food traffic remains flat in many markets, including the United States, so McDonald’s must capture market share from competitors and enhance restaurant productivity to sustain growth, McDonald’s Chairman and CEO Chris Kempczinski stated at an investor meeting held at the company’s Chicago headquarters. McDonald’s intends to automate additional tasks, including inventory management and scheduling, while improving kitchen operations.
“The winners will be the companies that create more demand and deliver it more efficiently,” Kempczinski said.
McDonald’s shares declined nearly 5% on Wednesday, marking the largest percentage drop since April 2025, as investors reacted to the substantial cost of upgrading McDonald’s 46,000 global stores.
Regarding its product offerings, McDonald’s reported that hand-breaded chicken, which has launched at 10,000 restaurants in Asia and several locations near Chicago, has driven increases in sales and quality ratings. Many of McDonald’s competitors, including Chick-fil-A and KFC, already offer hand-breaded chicken. The company plans to extend its testing to additional markets in the United States and Ireland next year.
McDonald’s also intends to introduce grilled chicken sandwiches and wraps in the United States and other regions, while experimenting with products such as egg bites and bowls to address customer demand for higher protein content and varied portion sizes.
Skye Anderson, president of McDonald’s USA, noted that approximately 30 million Americans currently use GLP-1 weight loss medications and seek smaller, protein-rich meals as a result. However, the company’s research shows that 60 million Americans actively pursue higher protein intake.
“This is an opportunity. We need to keep giving them more reasons to make McDonald’s their first choice,” Anderson said at McDonald’s investor day.
McDonald’s outlined that its restaurant modernizations will include lockers for managing delivery orders, more visible coffee preparation areas to improve quality perceptions, larger play areas, and enhanced kitchen layouts. Scales designed to ensure order accuracy, already utilized at 10,000 restaurants globally, will expand to 20,000 restaurants by 2028, according to McDonald’s.
The company is deploying its ArchIQ system, developed in partnership with Google, which enhances order accuracy through artificial intelligence and automates tasks such as inventory management and scheduling. Archy, the company’s AI-enabled drive-thru ordering system, now processes orders in both Spanish and English with a 90% accuracy rate.
Archy could eventually reduce at least 50 labor hours per week in a typical McDonald’s restaurant, Chief Financial Officer Ian Borden stated. He clarified that the company does not intend to reduce staffing levels. Instead, employees will focus more on hospitality or specialized tasks such as hand-breading chicken.
Kempczinski reported that customers have responded positively to Archy during testing because it improves order accuracy.
“It’s not AI is bad or AI is good. We try to be really thoughtful about how we use it,” he said.
McDonald’s is also implementing new employee training programs that will emphasize hospitality and food quality, according to Tiffanie Boyd, McDonald’s chief people officer. The training will adopt an experience-based approach, demonstrating to employees the taste of a perfectly cooked Big Mac, for instance, and promoting more positive customer interactions.
At the same time, McDonald’s maintains its focus on value. Kempczinski observed that low-income consumers, defined as U.S. households earning $45,000 or less annually, continue to purchase fast food but less frequently than before. McDonald’s has performed well with meal bundles, such as its $5 meal deal, he noted. The company is now exploring options to offer entry-level prices on a basic menu in the United States, similar to its approach in Europe and other markets.
“This is the environment that we’re in right now. You have to be on your game and deliver that value,” Kempczinski said. “The pressure around cost of living isn’t going away.”
McDonald’s U.S. franchisees typically invest up to $450,000 per decade on required store remodels. Under the company’s new initiative, they will need to spend an additional $800,000 over time, though McDonald’s will cover a portion through rent relief and capital support.
Borden explained that the investments will be phased in gradually as markets and individual franchisees become prepared for them. Once implemented, the efficiency improvements will generate approximately $100,000 in annual cash flow benefits to the average U.S. restaurant, some of which can be reinvested into the operation, Borden said.
“We’d love to see it going into hospitality to elevate the experience with our customers,” Borden stated.
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