McDonald’s is committing $8.5 billion over the next decade to overhaul its restaurants, retrain employees and reshape its menu as the fast-food giant battles slowing growth and intensifying competition.
The company announced the multibillion-dollar investment on Wednesday as part of a new strategy dubbed “Next,” aimed at making McDonald’s the first choice for more customers while improving the performance and efficiency of its restaurants.
About $5 billion of the investment is expected to be deployed over the next three and a half years through a combination of capital support and rent relief for franchisees.
The spending comes as McDonald’s faces pressure from changing consumer preferences, higher food costs and increasingly aggressive competitors.
The company reported its slowest quarterly growth since 2025 last month. Management attributed the weaker performance partly to an overload of promotions, inconsistent customer service and a major World Cup campaign that failed to generate the expected customer traffic.
McDonald’s shares have also fallen about 20% this year.
A significant portion of the investment will go towards upgrading McDonald’s restaurants.
The company requires franchisees to remodel their outlets roughly every decade, but the new programme goes beyond cosmetic improvements.
New restaurant designs feature larger dining areas, bigger play spaces and improved lighting, alongside redesigned kitchens equipped with artificial intelligence tools intended to improve speed and efficiency.
McDonald’s estimates that the new kitchen technology could generate an additional $100,000 in annual cash flow per restaurant through operational savings.
The upgrades are designed to make restaurants easier to operate while improving the customer experience.
The company is also changing its menu to capture consumers looking for higher-protein and more flexible meal options.
McDonald’s estimates that its potential US market includes about 60 million consumers seeking more protein, alongside roughly 30 million people using GLP-1 medications.
The chain is testing products including burger and chicken bowls, egg bites and additional grilled chicken options such as wraps.
McDonald’s USA President Skye Anderson said consumers increasingly want more protein, greater flexibility in portion sizes and meals that provide greater satisfaction without feeling excessive.
The strategy comes as competition intensifies across the fast-food industry.
Burger King, for example, reported an 8.5 per cent increase in US same-store sales in the latest quarter, giving it a significant advantage over McDonald’s and its widest lead over the rival chain in more than a decade.
Fast-growing coffee and beverage chains, as well as chicken-focused restaurants, are also competing for customers who traditionally might have chosen McDonald’s.
