McDonald’s announces $8.5 billion investment for restaurant upgrades and AI

McDonald’s has unveiled its “Next” strategy, a multi-year initiative involving an $8.5 billion investment through 2036 to modernize its restaurant system. The plan aims to combat sluggish sales and persistent inflation by providing franchisees with capital support, rent relief, and technology upgrades.

Key components of the investment include restaurant remodels, which occur roughly every decade, and the implementation of artificial intelligence. The company is introducing “ArchIQ,” an AI-based operating system designed to manage inventory, scheduling, and multilingual order taking to improve efficiency. Additionally, McDonald’s is expanding its menu with more protein-focused options, such as hand-breaded chicken.

To create new revenue streams, the company is also piloting the McDonald’s Media Network in the US. This retail media initiative allows third-party brands to advertise across the company’s digital and physical touchpoints, including the mobile app, kiosks, and menu boards. This move follows a period of slow growth and a decline in stock value as consumers face rising household costs.