McDonald's is investing up to $8.5 billion in a new growth push under its McDonald's >NEXT strategy, aimed at winning back customers through restaurant enhancements, menu innovation and improved worker experience. The fast-food giant said the spending will make its locations more contemporary, efficient and friendly across its restaurant system, and will also help pay for new menu items meant to give customers more reasons to visit more often. The size of the proposed investment puts execution under the spotlight for investors, since restaurant improvements and menu adjustments typically require considerable up-front spending before any gain in traffic or sales shows up in results. The program also ties employee experience to speedier service and a more consistent customer experience. McDonald's is unveiling the strategy as it seeks to strengthen its core business and respond to evolving consumer preferences and competition in the fast-food industry, with the next test being whether it can convert the investment into improved restaurant traffic and comparable sales as the >NEXT strategy rolls out.
McDonald’s CorporationMcDonald's is committing up to $8.5B in capex on its >NEXT strategy, with execution risk and unclear payoff for investors.
