Shares of McDonald’s declined following the company’s announcement of a plan to increase challenging consumer landscape.
McDonald’s revealed plans on Wednesday to direct $8.5 billion toward franchisees for technology upgrades and restaurant remodels as it prepares for an inflation-impacted economy for the foreseeable future.
Executives presented the franchisee support initiative, which will continue through 2036, as the most effective strategy to restore growth in its home market, where sales have softened as US consumers grapple with high costs for gasoline and other household necessities.
“When franchisees have stronger economics, our system is stronger,” Chief <a s stated that the initiative, referred to as its "Next" plan, is expected to result in approximately 2.5 percent efficiency gains at the restaurant level.
However, shares dropped significantly throughout the presentation, during which Borden also noted that US sales for the current quarter are trending toward being “slightly negative.”
Chief Executive Chris Kempczinski spoke to broadcaster CNBC, describing inflation as “sticky, not just in the US, but around the world.”
In this environment, the company intends to increase market share by focusing on the basics, “the foundation of improving taste and quality of the food that we serve,” the CEO told analysts.
The company is also working to improve its value proposition for budget-conscious consumers through digital promotions and meal bundles.
The chain’s first investor day in three years follows reports of annual US comparable sales growth of just 0.2 percent in 2024 and 2.1 percent in 2025.
When asked if he could restore McDonald’s annual growth in its domestic market to its historical average of three to four percent, Kempczinski said: “Yes, absolutely.”
These franchisee investments are intended to allece costs as high as $450,000 to renovate the lobby of a US restaurant
The Next plan includes additional investments, bringing the total to roughly $800,000 per US location, “to be phased in over time,” Borden said regarding the strategy.
McDonald’s locations in the US are primarily franchised. In 2025, more than 60 percent of the company’s global revenue was generated by franchised stores.
Shares of McDonald’s were down 6.4 percent following the midday session.
