The Golden Arches are in a rebuilding year

There’s still no word on whether or not execs will ever try to bring back Rock ’n’ Roll McDonald’s, but the Golden Arches announced a huge overhaul yesterday. The burger chain will invest $8.5 billion over the next decade to renovate its 44,000 franchises worldwide.

It’s not just a franchise facelift. Rival fast-food chains are horning in on Ronald McDonald’s turf, and McDonald’s has experienced a slowdown in the last few months. It’s also facing rising costs for beef and labor, as well as some misses on recent short-term promotions, so the chain is trying to become more well-rounded:

• McDonald’s will introduce more specialty drinks and breakfast options. Plus, it’ll put more chicken items on the menu. It wants to increase its market share in both the chicken and beverage categories by 1.5 percentage points in the next four years.
• The company wants to keep up with the growing number of customers using GLP-1s who are looking to eat more protein. It’s testing options like chicken and burger bowls and egg bites.
• McDonald’s will roll out its generative-AI system, called ArchIQ, across stores and franchise locations to take orders at its drive-thrus, and to help manage schedule shifts and inventory.

Investors aren’t convinced yet. There’s a reason the chain needs a new plan: CEO Chris Kempczinski said that he expects high inflation and flat traffic to continue to be challenges. The company’s stock fell yesterday to its lowest level since 2022.—MM