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McDonald’s outlined nearly USD 8.5 billion in franchisee support as part of an expanded growth strategy, while setting targets for margin and market share growth as the fast-food chain works to revive momentum after several quarters of slower performance.
Launched in June, McDonald’s ‘NEXT’ strategy focuses on improving food quality, hospitality, value, and innovation to boost growth.
Persistent inflation and fierce competition over value offerings pressured McDonald’s and other fast-food chains, contributing to slower sales growth in the US and international markets.
Last month, McDonald’s missed estimates for second-quarter US sales growth. The company cited execution missteps that hindered efforts to win back lower-income consumers who had cut back on dining out.
The company also named industry veteran and company insider Skye Anderson as president of its US business to help drive its turnaround strategy.
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Ahead of its investor day, McDonald’s said it would invest about USD 8.5 billion in its NEXT strategy through 2036, including roughly USD 5 billion by 2030. The investment will include rent relief and capital support for franchisees.
McDonald’s said its estimated 250-basis-point efficiency gain would add about USD 100,000 in annual cash flow for the average US restaurant. Franchisees are expected to recoup the investment in about four years.
McDonald’s expects unit expansion to contribute nearly 2.5% to systemwide sales growth in 2027 and about 2% by 2030.
The company is targeting operating margins in the low- to mid-50% range by 2030. For comparison, McDonald’s total adjusted operating margin for fiscal 2025 was 46.9%.
