- McDonald’s is asking franchisees to undertake $800,000 remodels across more than 46,000 restaurants as part of an $8.5 billion turnaround strategy called NEXT.
- Introduced by CEO Chris Kempczinski, the initiative aims to boost productivity through updates to technology, kitchens, operations, and store designs.
- Franchisees are pushing back against the plan, raising concerns over taking on debt, a lack of project details, and unproven sales benefits.
- Chief Financial Officer Ian Borden stated that investments will be phased over time, with McDonald’s setting aside funds to assist some locations with costs.
- The costly updates coincide with wider efforts to retain budget-conscious customers through value menus, alongside an ongoing lawsuit over AI pricing allegations.
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