McDonald's unveils $8.5 billion plan focusing on AI, hand-breaded chicken and restaurant remodels

McDonald's said it will invest $8.5 billion through 2036, with about $5 billion slated for deployment by 2030, to modernize restaurant technology, provide rent relief and fund capital improvements. The company plans to roll out AI-driven kitchen and drive-through systems, dubbed ArchIQ, in partnership with Google, and to pilot a hand-breaded chicken product that is marinated, battered and flipped seven times before cooking.

Chief Financial Officer Ian Borden told Yahoo Finance that the initiative offers a "clear and compelling" opportunity and should generate a strong return for both franchise operators and the corporation. CEO Chris Kempczinski noted that while higher interest rates increase financing costs for franchisees, the lower rates they receive compared with independent operators help offset those expenses.

Franchisees are expected to spend $400,000-$450,000 on a ten-year remodel cycle and an additional $800,000 per U.S. restaurant for productivity-driving upgrades, with slightly lower costs for international locations. The upgrades include refreshed interiors, exterior repairs and new play areas featuring slides and jungle-gym equipment, aimed at increasing family foot traffic.

McDonald's also launched a "Make it Golden" program to emphasize food quality, hospitality and employee training, with the hand-breaded chicken pilot targeting a 1.5% market-share gain and plans to expand to more U.S. sites in early 2027. The company expects AI-enabled efficiencies to improve restaurant-level gross margins by 250 basis points, translating to roughly $100,000 in annual cash flow per average U.S. outlet and saving more than 50 labor hours per week at drive-throughs.