$8.5 Billion Bet: McDonald's Invests in Franchise Network Amid US Sales Slump
McDonald's is facing a challenging market in the US, where comparable sales are expected to be 'slightly negative' for the current quarter. The company's shares have shed 21% since the start of the year and closed at EUR 207.60 on Friday, just above its 52-week low of EUR 205.80.
The pressure on McDonald's comes as it releases a decade-long spending plan worth $8.5 billion through 2036. The bulk of this sum, roughly $5 billion over the next three and a half years, is allocated to franchisees in the form of capital support and rent relief.
McDonald's also plans to modernize its restaurants and introduce new menu items aimed at protein-conscious diners as part of its 'Make It Golden' initiative. The company aims to bring administrative and selling expenses down to 1.9% of systemwide sales by 2030, from the 2.2% projected for 2026.