McDonald's is expanding its fried chicken offerings to capture market share amid rising beef costs and growing Gen Z preference for chicken over burgers. The company aims to increase its global chicken market share by 1.5 percentage points by 2030 while maintaining beef leadership, facing competition from chains like KFC, Popeyes, and Wingstop. McDonald's will invest $8.5bn to support franchisees as chicken demand rises and beef prices continue climbing.
McDonald's unveiled a growth strategy including $8.5 billion in technology investments through 2036, hand-breaded chicken products, and AI-powered drive-throughs to compete with Burger King, which recently outpaced it in same-store sales growth. The "Make it Golden" initiative aims to boost market share through food quality, hospitality, and employee training, though franchisees face challenges with implementation costs of $800,000 per restaurant in a high-interest environment.
McDonald's unveiled an $8.5 billion investment plan through 2036 focused on AI-powered drive-throughs, hand-breaded chicken, and restaurant redesigns to compete with Burger King, which has recently gained market share. The strategy, called 'Make it Golden,' aims to boost same-store sales and market share by 1.5% through improved food quality and technology, though franchisees face significant costs and margin pressures.
McDonald's is hosting an investor day in Chicago to detail its McDonald's > NEXT growth strategy aimed at reversing weak U.S. business performance, focusing on value offerings, improved food quality including hand-breaded chicken, and expanded beverage options. The company faces investor skepticism after its stock fell 18% over the past year and same-store sales grew just 0.8%, with franchisee cooperation on pricing proving critical to the turnaround.