Key facts
- McDonald's will invest about $8.5 billion in its NEXT strategy through 2036.
- The investment includes roughly $5 billion by 2030 for rent relief and capital support for franchisees.
- McDonald's expects an estimated 250-basis-point efficiency gain to add about $100,000 in annual cash flow for the average U.S. restaurant.
- Franchisees are expected to recoup the investment in about four years.
- The company targets unit expansion to contribute nearly 2.5% to systemwide sales growth in 2027 and about 2% by 2030.
- McDonald's expects operating margins in the low- to mid-50% range by 2030.
McDonald's on Wednesday outlined about $8.5 billion in franchisee support as part of an expanded growth plan and set targets for margin and market share growth, seeking to revive momentum after several quarters of slower performance. The company's "NEXT" strategy, launched in June, focuses on improving food quality, hospitality, value, and innovation.
Persistent inflation and competition over value offerings have pressured fast-food chains, contributing to slower sales growth for McDonald's in U.S. and international markets. Last month, the company missed estimates for second-quarter U.S. sales growth, citing execution missteps that hindered efforts to win back lower-income consumers.
McDonald's said it would invest about $8.5 billion in its NEXT strategy through 2036, including roughly $5 billion by 2030, through rent relief and capital support for franchisees. The company estimates an efficiency gain of 250 basis points, which would add about $100,000 in annual cash flow for the average U.S. restaurant, with franchisees expected to recoup the investment in about four years. The burger chain targets unit expansion to contribute nearly 2.5% to systemwide sales growth in 2027 and about 2% by 2030, with operating margins expected in the low- to mid-50% range by 2030. The company's total adjusted operating margin for fiscal 2025 was 46.9%. Skye Anderson, an industry veteran and company insider, was named president of its U.S. business to help drive its turnaround strategy.