McDonald’s Bets $8.5 Billion on Global Restaurant Overhaul

McDonald’s plans to invest $8.5 billion through 2036 to modernize restaurants, expand automation and add protein-focused menu items as the fast-food chain seeks new growth.

McDonald’s targets restaurant efficiency

The company announced the McDonald’s investment Wednesday during an investor meeting at its Chicago headquarters. The plan includes restaurant remodels, improved kitchen layouts, delivery lockers, larger play areas and technology designed to improve order accuracy and restaurant efficiency.

McDonald’s operates nearly 46,000 restaurants worldwide. Chairman and CEO Chris Kempczinski said traffic is flat in many markets, including the United States, making it increasingly important for the company to win customers from competitors and improve restaurant productivity.

“The winners will be the companies that create more demand and deliver it more efficiently,” Kempczinski said.

McDonald’s shares fell nearly 5% Wednesday, their biggest percentage decline since April 2025, as investors reacted to the cost of the planned upgrades.

The company said the McDonald’s investment will include about $5 billion in support through 2030, with the remainder extending through 2036. The support will come through rent relief and capital assistance for franchisees.

McDonald’s estimates the changes could generate about $100,000 in annual cash-flow benefits for the average U.S. restaurant. The company says the improvements are expected to have an approximately four-year payback for franchisees after company support.

AI and automation move into restaurants

Technology is a major part of the overhaul. McDonald’s is expanding its ArchIQ system, developed with Google, to automate tasks such as inventory management and scheduling while improving order accuracy.

The company also is expanding Archy, its artificial intelligence-powered drive-thru ordering system. Archy can take orders in English and Spanish and has reached a 90% accuracy rate in testing, according to McDonald’s.

Chief Financial Officer Ian Borden said Archy could eventually reduce at least 50 labor hours a week at a typical restaurant. He said the goal is not to eliminate jobs but to give employees more time for hospitality and food preparation.

“It’s not AI is bad or AI is good. We try to be really thoughtful about how we use it,” Kempczinski said.

McDonald’s also plans to expand scales that help check order accuracy. The equipment is already used at 10,000 restaurants and is expected to reach 20,000 locations by 2028.

Chicken and protein lead menu changes

The company is also changing its menu as it competes for customers seeking different portions and more protein. Hand-breaded chicken has expanded to 10,000 restaurants in Asia and several locations near Chicago, and McDonald’s says the product has improved sales and quality ratings.

The company plans to expand testing of hand-breaded chicken into additional U.S. markets and Ireland in 2027. It also plans to test grilled chicken sandwiches, wraps, egg bites and bowls in the U.S. and other markets.

McDonald’s USA President Skye Anderson said about 30 million Americans now use GLP-1 weight-loss drugs and that many are seeking smaller, protein-focused meals. The company’s research also indicates about 60 million Americans are actively seeking more protein in their diets.

“This is an opportunity. We need to keep giving them more reasons to make McDonald’s their first choice,” Anderson said.

McDonald’s also remains focused on affordability. Kempczinski said lower-income U.S. consumers continue to eat fast food but are dining out less often because of cost-of-living pressures.

“You have to be on your game and deliver that value,” Kempczinski said.

Franchisees typically spend up to $450,000 over a decade on required remodels. Under the new McDonald’s investment plan, they will spend an additional $800,000 over time, with McDonald’s covering part of the cost through rent relief and capital support.