FAQ: McDonald’s > NEXT

September 23, 2026

What is McDonald's > NEXT?

McDonald's > NEXT is McDonald's strategy to become the first choice for more customers, more often. It connects four pillars, Menu > NEXT, Consumer > NEXT, Restaurant > NEXT and People > NEXT, to drive more first-choice visits, create guest count growth, support restaurant productivity, strengthen restaurant economics and create capacity to reinvest for long-term growth.

What are the four pillars of NEXT?

The four pillars of McDonald's > NEXT will each contribute to a new chapter of growth and drive system and shareholder returns:

• Menu > NEXT elevates taste and quality through gold standard execution and menu innovation to drive stronger preference, more first-choice occasions, and baseline guest-count growth.  

• Consumer > NEXT capitalizes on McDonald's brand fandom and creates deeper individual customer relationships to generate more visits over time. 

• Restaurant > NEXT catalyzes growth and fuels productivity through elevated execution, simplifying operations, modernizing restaurant design, and deploying GenAI enabled ArchIQ at scale to unlock about 250 basis points of gross restaurant-level efficiency as McDonald's NEXT elements are deployed across the U.S. and International Operated Markets.  

• People > NEXT equips employees to deliver a new level of hospitality that creates a better, more consistent experience for customers - increasing repeat visits.   

Together, the four pillars operate as one restaurant-level engine: more demand, greater productivity, stronger economics and more capacity to reinvest.

How large is the McDonald's System?

McDonald's has more than 46,000 restaurants across more than 100 countries, with approximately 95% owned and operated by independent local business owners.

What will NEXT mean for customers?

NEXT is designed to improve the experience of each McDonald's visit, helping make McDonald's the first choice for more customers, more often. Customers will experience new menu items, great tasting food, genuine hospitality, reliable value, more relevant offers, and modern restaurants that reflect the brand they love.

What are McDonald's menu priorities under NEXT?

We are primarily focusing on the beef, chicken and beverage categories. We plan to maintain our leading market share in beef, while gaining 1.5 percentage points of share in both chicken and beverages by 2030, supported by stronger execution through our Make it Golden initiative, menu innovation, an expanded beverage lineup and sharper quality storytelling to help customers understand their improved options.

What is Consumer > NEXT?

Consumer > NEXT is our strategy to convert our existing customer relationships and brand affinity into more visits. We plan to use fan-led marketing, a tiered loyalty program, tailored experiences, offers and rewards to make interactions more relevant and create additional reasons for customers to choose McDonald's.

How large is McDonald's loyalty ecosystem?

As of June 30, 2026, we have nearly 220 million active loyalty members across 70 loyalty markets.

How does fan-led marketing fit into NEXT?

We plan to build on our menu, rituals, characters and brand equities to create larger, globally scaled campaigns that travel through culture and are amplified by fans. The objective is to convert brand fandom into more frequent visits and stronger customer relationships.

What is Restaurant > NEXT?

Restaurant > NEXT is focused on making our restaurants easier to run, modernizing restaurant design and deploying GenAI enabled ArchIQ at scale to unlock about 250 basis points of gross restaurant-level efficiency as McDonald's NEXT elements are deployed across the U.S. and International Operated Markets. It includes voice AI ordering in the drive-thru, automated inventory, order-accuracy tools, improved kitchen and beverage workflows, predictive maintenance, delivery areas and AI-enabled tools.

What operational tools are part of Restaurant > NEXT?

Restaurant > NEXT includes tools designed to improve accuracy, reliability and restaurant productivity. Archy, our voice AI tool in the drive-thru, has achieved accuracy above 90% in both English and Spanish and will free at least 50 labor hours per week as it scales, automated inventory is expected to save about five labor hours per week and reduce food waste by 15%, and accuracy scales are already catching and correcting any mistakes before orders reach customers. Finally, shifting equipment management to predictive operations drives an approximately 50% improvement in key equipment and menu availability.

What efficiency improvement is McDonald's targeting?

We are targeting approximately 250 basis points of gross restaurant-level efficiency after full deployment of NEXT elements across the U.S. and International Operated Markets. For an average U.S. restaurant, that is equivalent to roughly $100,000 in gross annual cash-flow benefits, the majority of which is expected to benefit the restaurant's bottom line over time.

How much will Restaurant > NEXT require in investment?

For a traditional drive-thru restaurant, Restaurant > NEXT is expected to require about $800,000 in incremental investment in the U.S. and generally $650,000 to $700,000 across our International Operated Markets.

How will McDonald's support franchisee investment?

Based on foreign exchange rates as of September 23, 2026, McDonald's expects to provide partnering support of about $8.5 billion through 2036, including about $5 billion by the end of 2030, through rent relief and capital. Of that $5 billion, McDonald's estimates $1.5 billion to $2 billion will be in the form of capital partnering to accelerate deployment of Restaurant > NEXT.

How are franchisees involved in NEXT?

Franchisees are central to NEXT because they shape the restaurant and customer experience. Investment and cash-flow questions are important, so we are working with franchisee taskforces to phase implementation, localize priorities, fold investments into remodel cycles where possible and maintain listening, transparency and two-way dialogue. Our aim is to implement NEXT in a way that is sustainable and profitable for both the business and franchisees.

How will McDonald's use AI in restaurants?

We plan to use AI-enabled tools to improve restaurant efficiency by simplifying operations, improving order accuracy, supporting inventory management and identifying equipment issues before they affect customers. Archy, our voice AI tool in the drive-thru, has achieved accuracy above 90% in both English and Spanish and will free at least 50 labor hours per week as it scales, automated inventory is expected to save about five labor hours per week and reduce food waste by 15%, and accuracy scales are already catching and correcting any mistakes before orders reach customers. Finally, shifting equipment management to predictive operations drives an approximately 50% improvement in key equipment and menu availability.

What is People > NEXT?

People > NEXT delivers a new level of hospitality that creates a better, more consistent experience for customers. This will be supported by "Make It Golden," a multi-year, Systemwide commitment launched on Founder's Day, October 5, 2026, to bring the System together around delivering great food and great hospitality that are uniquely McDonald's. The approach includes training, coaching, measurement, self-assessment tools, recognition and clearer expectations, positioning hospitality as a culture shift that starts now.

When will customers see NEXT changes?

Investments will be phased, folded into remodel cycles where possible and deployed when restaurants are ready for tools, accuracy scales and delivery lockers.

What financial targets accompany NEXT?

• Gain 1.5 percentage points of market share in both chicken and beverages by 2030 while maintaining beef market share leadership.

• Reach an adjusted operating margin in the low-to-mid 50% range by 2030.

• Reduce G&A to approximately 1.9% of Systemwide sales by 2030.

• Achieve free-cash-flow conversion in the mid-to-high 80% range by 2030.

• Generate approximately 250 basis points of gross restaurant-level efficiency gains after full deployment of NEXT elements across the U.S. and International Operated Markets.

• Deliver nearly 2.5% contribution to Systemwide sales growth from new restaurants in 2027, moderating to approximately 2% by 2030.

• Based on foreign exchange rates as of September 23, 2026, maintain approximately $3 billion in baseline annual capital expenditures from 2027 to 2030, plus $1.5 billion to $2 billion in cumulative capital partnering to accelerate deployment of Restaurant > NEXT.

• Provide approximately $8.5 billion in total NEXT partnering through 2036, including about $5 billion by the end of 2030.

These are forward-looking expectations and remain subject to the risks described in McDonald's public filings.