McDonald's Allocates $8.5 Billion to Support Franchisees

McDonald's will allocate $8.5 billion over the next ten years to support franchises. Due to high inflation, the company no longer expects rapid growth in customer numbers.

According to CEO Chris Kempczinski, customer traffic in the fast-food sector may no longer increase. Last quarter, McDonald's sales growth in the US fell short of forecasts. Lower-income customers are visiting restaurants less frequently, while competitors with cheaper offers are putting increasing pressure on McDonald's.

Of the $8.5 billion package, about $5 billion will be spent by 2030. Franchises will receive benefits on rent and financing for new projects. McDonald's also plans to renovate restaurants, train employees, and expand its AI-based ArchIQ system.

The company is also working on changing its menu. It is considering more protein-rich dishes, including grilled chicken, smaller egg portions, and bowl-based meals. McDonald's aims to exceed a 50% operating profit margin by 2030.

Source: Reuters