McDONALD'S ADVANCES NEXT STRATEGY TO BECOME FIRST CHOICE FOR MORE CUSTOMERS, MORE OFTEN
ANNOUNCES NEW GROWTH AND PRODUCTIVITY TARGETS FOR CATEGORY SHARE GAINS, INCREASED RESTAURANT EFFICIENCY AND EXPANDED OPERATING MARGIN
•Targets 1.5 percentage points of market share gains in both chicken and beverage categories by 2030 while maintaining its leadership position in beef
•Expands operating margin to low-to-mid 50% range by 2030 and delivers approximately 250 basis points of gross restaurant-level efficiency gains
•Launches Make It Golden, a multi-year, Systemwide commitment to elevate the customer experience through great food and great hospitality that are uniquely McDonald’s
CHICAGO, IL - Today McDonald's Corporation details its McDonald’s > NEXT strategy and announces new financial targets tied to the enhanced growth and productivity NEXT will enable.
McDonald’s > NEXT is an ambition to be the first choice for more customers, more often, leveraging the capabilities built through Accelerating the Arches - with dedicated value leadership to create more demand and deliver it more efficiently to drive growth.
“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,” said McDonald’s Chairman and Chief Executive Officer Chris Kempczinski. “That’s what McDonald’s > NEXT is about: to be the first choice for more customers, more often - while making our restaurants stronger and easier to run. 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.”
SCALE AND CAPABILITIES AS COMPETITIVE ADVANTAGE
With more than 70 million customers served daily, a menu with 17 iconic billion-dollar brands, and nearly 220 million 90-day active loyalty members across 70 loyalty markets, McDonald’s possesses assets unmatched in its industry.
Since the launch of the Accelerating the Arches strategy in 2020, the Company has continued to successfully modernize its technology and infrastructure to better leverage its operational advantages and scale. This includes building common technology platforms, a single enterprise data foundation, and operating systems and capabilities across more than 46,000 restaurants, helping to identify opportunities faster, test them rigorously, and deploy what works more efficiently.
NEXT: A GROWTH AND PRODUCTIVITY ENGINE
As customer expectations and industry dynamics continue to shift, McDonald’s > NEXT will ensure the Company is positioned to drive durable comparable sales and guest count growth, gain market share, and enhance restaurant productivity. The four pillars of McDonald’s > NEXT will each contribute to a new chapter of growth and drive system and shareholder returns:
•Menu > NEXT elevates taste and quality through gold standard execution and innovation to drive stronger preference, more first-choice occasions, and baseline guest-count growth.
•Consumer > NEXT capitalizes on McDonald’s brand fandom and further personalizes customer relationships to generate more visits over time.
•Restaurant > NEXT catalyzes growth and fuels productivity through elevated execution, simplifying operations, modernizing restaurant design, and deploying GenAI enabled ArchIQ at scale to unlock about 250 basis points of gross restaurant-level efficiency as McDonald’s NEXT elements are deployed across the U.S. and International Operated Markets.
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•People > NEXT equips employees to deliver a new level of hospitality that creates a better, more consistent experience for customers – increasing repeat visits.
McDonald's > NEXT will be supported by Make It Golden, a multi-year, Systemwide commitment to elevate the customer experience. Beginning on Founder’s Day, October 5, Make It Golden will bring the System together around delivering great food and great hospitality that are uniquely McDonald’s.
Taken together, NEXT is a value creation strategy that will generate more first choice occasions to drive guest-count growth; combined with efficiency this improves restaurant economics; and stronger economics creates capacity to reinvest, reinforcing the cycle of growth and productivity.
INVESTING ALONGSIDE FRANCHISEES
NEXT is the destination. Markets will define their paths, pairing globally scaled solutions with local insights and sequencing the work with a clear focus on franchisee capacity and investment returns.
To accelerate restaurant modernization, technology deployment and operational improvements, McDonald's plans to provide approximately $8.5 billion in total NEXT partnering support through 2036, including approximately $5 billion through 2030, through a combination of rent relief and capital support.
The target of approximately 250 basis points of gross restaurant-level efficiency improvements is equivalent to roughly $100,000 in annual cash flow benefits for the average U.S. restaurant, the majority of which is expected to benefit the restaurant’s bottom line over time. McDonald's estimates these investments will generate an approximately four-year payback for franchisees, after partnering, while improving both customer and crew experiences.
FINANCIAL PERFORMANCE EXPECTATIONS
“McDonald’s scale and financial strength reflects decades of disciplined execution, prudent decision-making, and a proven ability to create long-term value. McDonald’s > NEXT builds on that foundation while allocating capital to drive growth and productivity. The financial targets we are introducing today are grounded in the expected economics of Restaurant > NEXT and the opportunities we see ahead,” said Executive Vice President and Global Chief Financial Officer Ian Borden.
Financial Targets
Sales from unit expansion
Nearly 2.5% contribution to Systemwide sales growth in 2027, moderating to about 2% by 2030
Operating margin %
Low-to-mid 50% range by 2030
G&A % of Systemwide sales
About 1.9% by 2030
Capital expenditures
From 2027 through 2030, based on today’s foreign exchange rates, about $3 billion of annual baseline capital expenditures plus $1.5 billion to $2 billion of cumulative capital partnering support to accelerate deployment of Restaurant > NEXT
Free cash flow conversion %
Mid-to-high 80% range by 2030
Restaurant efficiency
About 250 bps in gross restaurant-level efficiency gains, with timing aligned to the full deployment of NEXT elements across the U.S. and International Operated Markets
Category share
Gain +1.5pp in chicken share and +1.5pp in beverage share by 2030; maintain beef market share leadership
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THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT THIS RELEASE
Comparable sales and comparable guest counts are compared to the same period in the prior year and represent sales and transactions, respectively, at all restaurants, whether operated by the Company or by franchisees, in operation at least thirteen months including those temporarily closed. Some of the reasons restaurants may be temporarily closed include reimaging or remodeling, rebuilding, road construction, natural disasters, pandemics and acts of war, terrorism or other hostilities. Comparable sales exclude the impact of currency translation and the sales of any market considered hyperinflationary (generally identified as those markets whose cumulative inflation rate over a three-year period exceeds 100%), which management believes more accurately reflects the underlying business trends. Comparable sales are driven by changes in guest counts and average check, the latter of which is affected by changes in pricing and product mix.
Systemwide sales include sales at all restaurants, whether owned and operated by the Company or by franchisees. Systemwide sales to loyalty members are comprised of all sales to customers who self-identify as a loyalty member when transacting with both Company-owned and operated and franchised restaurants. Systemwide sales to loyalty members are measured across 70 markets with loyalty programs. Systemwide sales to loyalty members represents an aggregation of the prior four quarters of sales to loyalty members active in the last 90 days of the respective quarter. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company's financial performance because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The Company's revenues consist of sales by Company-owned and operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and affiliates. Changes in Systemwide sales are primarily driven by comparable sales and net restaurant unit expansion.
Free cash flow, defined as cash provided by operations less capital expenditures, and free cash flow conversion rate, defined as free cash flow divided by net income, are measures reviewed by management in order to evaluate the Company’s ability to convert net profits into cash resources, after reinvesting in the core business, that can be used to pursue opportunities to enhance shareholder value.
RELATED COMMUNICATIONS
McDonald’s Corporation will host an Investor Day at McDonald's headquarters beginning at 8:30 a.m. (Central Time) on September 23, 2026. For additional information and registration details, please visit the Investor Events section of the Company's Internet home page at www.investor.mcdonalds.com. There will also be an archived webcast available for a limited time thereafter.
UPCOMING COMMUNICATIONS
For important news and information regarding McDonald's, including the timing of future investor conferences and earnings calls, visit the Investor Relations section of the Company's Internet home page at www.investor.mcdonalds.com. McDonald's uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.
ABOUT McDONALD’S
McDonald’s is the world’s leading global foodservice retailer with over 46,000 locations in over 100 countries. Approximately 95% of McDonald’s restaurants worldwide are owned and operated by independent local business owners.
FORWARD-LOOKING STATEMENTS
This document contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from expectations are detailed in the Company’s filings with the Securities and Exchange Commission, including the Company’s Form 10-Q filing for the quarter ended June 30, 2026. The Company undertakes no obligation to update such forward-looking statements, except as may otherwise be required by law.
