$8.5 Billion Burger: McDonald's Restaurant Overhaul Aims to Boost Sales

McDonald's is planning to spend $8.5 billion over the next decade on modernizing its restaurants globally, aiming to boost sales and quality ratings.

The company's Chairman and CEO Chris Kempczinski said that fast-food traffic in many markets, including the U.S., is flat, so McDonald's has to grab share from competitors and improve restaurant productivity. To achieve this, McDonald's plans to automate more tasks, like inventory and scheduling, and improve kitchen operations.

On the product side, McDonald's will introduce hand-breaded chicken sandwiches and wraps in the U.S. and other markets, as well as experiment with products like egg bites and bowls to meet the needs of customers who are seeking more protein and varied portion sizes. The company's research indicates that 60 million Americans are actively seeking more protein in their diet.

McDonald's will also roll out new employee training that focuses on hospitality and food quality, using experience-based methods to show employees what a perfectly cooked Big Mac tastes like, for example. Additionally, the company is deploying its ArchIQ system, developed with Google, which improves order accuracy with artificial intelligence and automates tasks like inventory management and scheduling.