McDonald’s set to spend billions on big changes. What to expect

McDonald’s plans to spend about $8.5 billion through 2036 to modernize its restaurants, expand technology and improve operations as the fast-food giant looks for new ways to attract customers and grow sales.

The investment, announced Wednesday, Sept. 23, at the company’s investor day in Chicago, includes about $5 billion through 2030. McDonald’s said the money will be provided through rent relief and other financial support to help franchisees upgrade restaurants and adopt new technology.

McDonald’s operates more than 46,000 restaurants worldwide. The company estimates that the changes could generate about $100,000 in annual cash-flow benefits for the average U.S. restaurant. The upgrades will be funded in part by McDonald’s franchisees, who typically spend up to $450,000 on required restaurant remodels over a decade, AP News reported. Under the new plan, franchisees are expected to spend an additional $800,000 over time, while McDonald’s will help offset those costs through rent relief and other financial support. The company estimates the improvements could generate about $100,000 in annual cash-flow benefits for the average U.S. restaurant, allowing franchisees to recoup their investment in about four years.

McDonald’s is making the investment as fast-food restaurants see little growth in customer visits in many markets, including…

Original source: https://www.usatoday.com/money/