McDonald's unveiled plans Wednesday to steer $8.5 billion to franchisees for restaurant remodels and technology upgrades as it prepares for an inflation-challenged consumer economy for the foreseeable future. The franchisee support plan, which will run through 2036, is the centerpiece of an initiative the company calls its "Next" plan, and executives pitched it as the best course to reignite growth in its home market, where sales have slowed as US consumers struggle with lofty prices for gasoline and other household items. Chief Financial Officer Ian Borden outlined measures including rent relief and capital support, and said the initiative would translate into about 2.5 percent restaurant-level efficiency gains, while also warning that US sales in the current quarter are on track to be "slightly negative." The franchisee investments aim to cushion the financial hit to small businesses that can face price tags as much as $450,000 to remodel the lobby in US restaurants, and the Next plan envisions additional investments taking the total to around $800,000 in US restaurants, to be phased in over time, Borden said. Chief Executive Chris Kempczinski, who described inflation as "sticky, not just in the US, but around the world," said he could absolutely return McDonald's annual growth in its home market to its historic average of around three or four percent, and the company is also seeking to sharpen its value offering through meal packages and digital promotions. The chain's first investor day in three years comes after it reported annual US comparable sales growth of just 0.2 percent in 2024 and 2.1 percent in 2025, and shares of McDonald's fell 6.4 percent after midday.
McDonald’s CorporationMcDonald's will steer $8.5B to franchisees for remodels and tech through 2036, and warned current-quarter US sales are tracking slightly negative.
