McDonald's Shares Plummet as $8.5 Billion Franchisee Support Plan Unveiled

McDonald's shares fell over 4% on Wednesday morning following the fast-food chain's investor day, where it unveiled an $8.5 billion franchisee support plan and long-term growth targets.

The company plans to provide approximately $8.5 billion in support to its franchisees through 2036, including around $5 billion by 2030, through rent relief and capital contributions as part of its NEXT strategy.

Investors expressed concerns about the near-term cash-flow impact of the investment, while benefits from restaurant upgrades and technology deployment are expected to materialize over several years.