McDonald's Is Getting an $8.5B Makeover

McDonald's is planning a massive menu-and-makeover push—and it's willing to spend $8.5 billion to do it. The company said Wednesday it will funnel that money to franchisees through 2036, using a mix of capital support and rent breaks to modernize restaurants, upgrade tech, and streamline kitchens under a strategy dubbed "Next," Bloomberg reports. The goal: better food, smoother service, and stores that are both more open and a bit more playful than recent minimalist designs.

The overhaul comes as US sales growth cools, promotions misfire, and the chain faces stiff competition in chicken and drinks. McDonald's plans to cut back on short-term marketing stunts, lean on "proven" value deals, and chase more chicken and beverage market share, while also testing items like grilled-chicken wraps aimed at GLP-1 drug users seeking smaller, high-protein portions.

Skye Anderson, a 26-year company veteran who became president of McDonald's USA last month, said 30 million Americans are on GLP-1 drugs, and 60 million are seeking more protein in their diets, the AP reports. " This is an opportunity," she said Wednesday. "We need to keep giving them more reasons to make McDonald's their first choice." Investors appear to be unconvinced: The company's stock fell more than 5% Wednesday and is down around 22% for the year so far.