McDonald's bets on hand-breaded chicken, AI drive-thrus to fend off Burger King

Chicago, IL — McDonald's is betting on artificial intelligence, hand-breaded chicken, and a 90s-style restaurant revival to win back customers who have left for rivals like Burger King. At its investor day in Chicago, the fast-food giant unveiled ambitious goals and investments as part of its growth plan. Following a challenging second quarter, where McDonald's reported just 0.8% US same-store sales growth, the company aims to invest $8.5 billion through 2036 to update its restaurants with tech and modernize its look and feel.

McDonald's intends to spend around $5 billion of that by 2030, encouraging franchisees to phase in the updates. The company's CFO, Ian Borden, believes the plan will provide a strong return for both operators and McDonald's itself. The company is also testing hand-breaded chicken, targeting a 1.5% share of the chicken category and planning to expand the pilot to more US restaurants by early 2027.

McDonald's is also focusing on beverages, aiming for 1.5% market share by 2030. The company is bringing back a smaller PlayPlace with a slide, jungle gym, and analog toys to encourage more frequent visits from families. Additionally, McDonald's is implementing AI technology in its kitchens and drive-thrus, dubbed ArchIQ, to improve efficiency and quality.

The company's strategy aims to drive nearly 2.5% systemwide sales growth by 2027, which would then moderate to about 2% by 2030. However, it remains to be seen whether the plan can turn around McDonald's stock, which has underperformed this year, declining 18% year to date compared to Burger King's 4.6% gain and a 13% gain for the S&P 500.