The McDonald’s Corporation has revealed details of its Next strategy, and how it will support franchisees as it aims to reach new financial targets.
Key to the Next plan is accelerating restaurant modernisation, technology deployment and operational improvements.
The burger chain estimates it will cost about US$8.5 billion through to 2036 to support franchisees (with a combination of rent relief and capital support) to achieve its goals. These include a low-to-mid 50 per cent range operating margin by 2030, and 2.5 per cent unit growth in 2027, dropping to about 2 per cent by 2030.
The company has set a target in restaurant-level efficiency improvements equivalent to about US$100,000 in annual cash flow benefits for the average US restaurant.
McDonald’s estimates these investments will generate an approximately four-year payback for franchisees, after partnering, while improving both customer and crew experiences.
The chain also aims to increase category share by 1.5 percentage points in chicken, and in beverages, and maintain its beef market share leadership.
McDonald’s CEO and chair Chris Kempczinski said the Next strategy is about making restaurants stronger and easier to run while offering more customer choice.
“We are confident that executing across the key components of Next will unlock stronger restaurant economics, generate attractive returns for the company, our franchisees and shareholders, and increase capacity to keep investing in growth,” Kempinski said.
“McDonald’s has the unmatched scale, customer insights, brand loyalty, and operational capabilities to not only adapt to the next wave of change in our industry, but to turn it into an advantage,” he said.
