McDonald’s Sets $8.5 Billion Plan as Burger King Gains Ground

McDonald’s said September 23 it will provide about $8.5 billion in franchisee support through 2036, pairing restaurant upgrades with new chicken products and artificial-intelligence tools. The company aims to win customers as Burger King’s U.S. sales growth outpaces its own.

In the second quarter, McDonald’s U.S. comparable sales rose 0.8%, while Burger King’s climbed 8.5%. Comparable sales track locations open at least a year, offering a view of demand separate from new restaurant openings.

McDonald’s is testing hand-breaded chicken and expects to add U.S. locations to the pilot in early 2027, according to Yahoo Finance. It wants to gain 1.5 percentage points of market share in chicken by 2030, alongside the same target for beverages.

The technology push centers on ArchIQ, McDonald’s generative AI system for restaurant operations. The company says it plans to deploy the tool at scale to help streamline work and improve efficiency; separate reports say AI ordering is being tested at some drive-throughs.

The plan also includes modernizing restaurant layouts and reviving some playful design features. McDonald’s says the goal is to make stores easier to run while improving the customer experience, not just to add new menu items.

The $8.5 billion is not a single company construction budget. McDonald’s says the support will combine capital assistance and rent relief, with about $5 billion planned through 2030. That backing may matter to franchisees facing the expense of renovations.

McDonald’s estimates the changes could deliver roughly $100,000 in annual cash-flow benefits for an average U.S. restaurant, with an expected four-year payback for franchisees after support. Those are company projections, dependent on how widely and effectively the upgrades are adopted.

Investors will be watching whether the chicken tests expand, whether the AI tools improve service, and whether the spending lifts sales without overloading restaurant teams. McDonald’s is targeting a 2030 operating margin in the low-to-mid 50% range.