McDonald's on Wednesday announced plans for its own media network, pricey restaurant upgrades and ways to win over GLP-1 users during an investor presentation at its Chicago headquarters. In June, the company unveiled its newest growth strategy , McDonald's > NEXT. The pillars of the plan include a new restaurant design, better-tasting food and drinks, consumer-led innovation, and improved hospitality from employees. But until Wednesday, executives had offered few details about how they would implement the plan and how it may affect its financial results over the coming years. The shifts come as McDonald's U.S. business tries to rebound from sluggish sales and as consumers hit by years of elevated inflation visit restaurants less often. The chain aims to win over more diners at a time the company expects inflation and flat traffic to restaurants overall will persist, CEO Chris Kempczinski told CNBC. The plan and Kempczinski's comments did not impress Wall Street, as McDonald's shares fell 5% in morning trading. A key part of the strategy is restaurant remodels, which McDonald's mandates roughly every decade for franchisees. The new design features updated PlayPlaces, which were previously being phased out, and more open kitchen layouts. Customers will be able to see their McCafe drinks being prepared. But the chain will also unveil what it calls Restaurant > NEXT, which includes improvements to equipment, technology and operations. It also will feature "ArchIQ," an artificial intelligence-powered operating system for restaurants. The company said "Archy" can take orders in English and Spanish from customers, saving about 50 labor hours per week, while other elements of ArchIQ can manage inventory and schedule shifts, as well as use scales to assess order accuracy. "Capabilities such as AI-enabled revenue management and Archy's suggestive sell will help increased average check over time," CFO Ian Borden said. All of those upgrades will require steep investment from franchisees. But McDonald's is also planning to provide financial support, through rent relief and actual capital. Through 2036, McDonald's plans to spend as much as $8.5 billion to accelerate franchisees' investment in the restaurant improvement plan. About $5 billion of that support will happen through 2030. McDonald's is projecting about $1.5 billion to $2 billion in capital spending from 2027 through 2030 to accelerate NEXT, in addition to about $3 billion every year on typical capital expenditures. (In 2025, McDonald's reported $3.4 billion in capital expenditures.) A standard lobby remodel of a drive-thru restaurant in the U.S. typically costs about $400,000 to $450,000, paid for by the franchisee. The additional investments tied to the plan will be "incremental" to the remodel expenses and cost roughly $800,000 per restaurant, although McDonald's will be providing financial support for some of that, according to Borden. Those investments will be phased, with tech, kitchen and operational upgrades adopted over time as they become available. Franchisees may protest the franchisor's expectations for their own investment in the restaurants, on top of standard cosmetic remodels. Beef and labor costs are already weighing on their profits. But executives think...
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