McDonald’s is planning a major $8.5 billion spending push to improve its restaurants, employees and menu as it tries to bring more customers back. The fast-food giant said it will spend $8.5 billion by 2036 on several changes across its business. The plan includes remodeling restaurants, training employees and adding new food items, especially for customers looking for more protein.
McDonald’s will spend about $5 billion in the next three-and-a-half years alone. That $5 billion will include financial support for franchise owners and rent relief, along with money for restaurant improvements. McDonald’s recently reported its slowest quarterly growth since 2025, showing that the company needs to attract more customers. McDonald’s shares have fallen about 20% this year, according to CNN.
Because food prices have increased, making some customers less willing to eat out, the wider restaurant industry is also facing pressure.
The company said the goal of “Next” is to make McDonald’s the first choice for more customers and get people to visit more often. CEO Chris Kempczinski said the strategy is also meant to make McDonald’s restaurants stronger and easier to operate, according to CNN. McDonald’s said this in a press release.
The spending is part of a new multiyear strategy called “Next. The company is making these changes as it faces stronger competition from other fast-food chains. McDonald’s blamed the recent slowdown partly on too many promotions, weak customer service and a major World Cup promotion that did not bring in as many customers as expected.
McDonald’s requires its franchise restaurants to undergo a remodel every 10 years. McDonald’s expects the new kitchen technology to help each restaurant generate about $100,000 more in cash flow through savings, according to the company. The company will launch a new employee retraining program on October 5. The program will cover about 2 million McDonald’s employees around the world.
A large part of the new spending will go toward remodeling McDonald’s restaurants. The new restaurant designs will include larger dining areas, bigger play areas and better lighting. McDonald’s also plans to redesign its kitchens. The new kitchens will use AI tools to help restaurants work faster and more efficiently. McDonald’s is also changing how it trains its workers. The training is meant to improve how employees serve customers and how restaurants operate. McDonald’s is not alone in focusing on employee training. Rivals including Burger King and Starbucks are also introducing similar programs. The renewed focus on employees comes as customers are becoming less interested in self-service technology and still want better service from workers.
McDonald’s estimates that the market includes about 60 million Americans looking for more protein, along with about 30 million GLP-1 users. Burger King reported an 8.5% increase in US same-store sales last quarter. That growth was higher than McDonald’s by the largest margin in more than 10 years, according to CNN. Overall, McDonald’s $8.5 billion plan will focus on better restaurants, faster kitchens, simpler promotions, more protein-focused food, stronger coffee offerings and retrained employees as the company tries to bring customers back.
The new value strategy is therefore also aimed at making promotions simpler and easier for restaurants to manage. The company has already announced plans involving new drinks and is now focusing on improving the way coffee is made and sold.
Skye Anderson, president of McDonald’s USA, said customers want more protein, different portion sizes and food that makes them feel full without feeling like they ate too much, according to CNN. The new menu could replace the recently launched “$3 and Under” menu. Kempczinski said restaurants became overwhelmed by the number of promotions during the quarter. He said the large number of promotions made restaurant operations less efficient and affected customer service times. Kempczinski made the comments during McDonald’s recent earnings discussion, according to CNN. Anderson said McDonald’s has many things that customers like, but the company is not delivering consistently enough when it comes to execution.
McDonald’s is also changing its menu as it tries to respond to changing customer tastes and competition. The company is focusing on customers who want more protein in their meals. The company is testing several new food options aimed at these customers. These include burger bowls, chicken bowls and egg bites. McDonald’s is also testing more grilled chicken options, including grilled chicken in wraps. The menu changes come as McDonald’s faces growing competition from chicken-focused fast-food chains, which have been adding more nuggets, tenders and other chicken items. McDonald’s is also facing pressure from Burger King, which has recently improved its business. McDonald’s is also facing competition from fast-growing beverage chains that are attracting customers with drinks. McDonald’s is considering another major menu change involving its value offerings. The company is discussing a new value menu with its franchisees. The change comes after McDonald’s admitted that it had too many promotions running at the same time. McDonald’s is also putting more money into its coffee business. McDonald’s plans to install new espresso machines at restaurants. It will also offer alternative milk options for customers. The company hopes these changes will help it increase coffee sales and compete with growing beverage chains.
Anderson made the comments at McDonald’s investor day on Wednesday, according to CNN.
