McDonald's shares fell 6.1% after the company unveiled its NEXT strategy and said it will provide about $8.5 billion in franchisee support through 2036, with roughly $5 billion of that total coming through 2030 as rent relief and capital support to accelerate restaurant modernization, technology, and operations. The company said the plan should deliver about 250 basis points of gross restaurant-level efficiency, roughly $100,000 of annual cash flow for the average U.S. restaurant, and about a four-year payback for franchisees after the support. McDonald's also set 2030 targets of an operating margin in the low-to-mid 50% range, 1.5 percentage points of share gains in both chicken and beverages, and continued leadership in beef. Chairman and chief executive Chris Kempczinski said the aim is to be the first choice for more customers, more often, while making restaurants stronger and easier to run, and chief financial officer Ian Borden said the targets are grounded in the expected economics of the restaurant program. Sweetgreen, Wingstop, Portillo's, and First Watch were each down about 3% at the same open against a 3.28% decline for the restaurant group, leaving McDonald's weaker than the category on its own Investor Day.
McDonald’s CorporationMcDonald's unveiled an $8.5B franchisee support plan through 2036, pressuring shares and near-term economics.
First Watch Restaurant Group Inc
Portillo's Inc
Sweetgreen Inc
Wingstop Inc