McDonald’s Tests Drive-Thru Ads as Growth Questions Persist

McDonald’s tested third-party advertising on digital drive-thru order boards at 450 sites, exploring a potential new revenue stream as sales growth remains modest. The company’s second-quarter 2026 revenue increased about 3.7% year over year, while global comparable sales rose 1.3%.

Insider Monkey’s analysis says the advertising opportunity’s scale is uncertain. It reports that management views the initiative as a low-cost way to generate high-margin revenue, since the drive-thru screens are already in place.

The article also points to McDonald’s debt: the company had $54.6 billion in total debt and $11.35 billion in trailing 12-month operating cash flow. It says the cash flow provides some flexibility, but that the debt could constrain the company if earnings weaken.

McDonald’s reported a 46.49% operating margin and a 31.72% profit margin over the last 12 months. The article attributes those margins in part to the franchise-heavy model, where the company collects rent and royalties from franchisees.

Management’s target is to reach a low-to-mid-50% operating margin by 2030, according to the article. It also says the company is shifting its focus toward hospitality and customer experience through its NEXT strategy.