McDonald’s Unveils $8.5 Billion Franchisee Support Plan to Revive Growth

McDonald’s on Wednesday announced an $8.5 billion franchisee support plan as part of its expanded growth strategy, NEXT, aimed at reviving momentum after several quarters of slower performance. Launched in June, the strategy focuses on improving food quality, hospitality, value and innovation, while setting targets for market share and profit margin growth.

The investment, planned through 2036, includes approximately $5 billion by 2030 through rent relief and capital support for franchisees. McDonald’s estimates that a 250-basis-point efficiency gain could generate around $100,000 in annual cash flow for the average U.S. restaurant, with franchisees expected to recover their investment in approximately four years. The initiative comes amid persistent inflation and intensifying competition, which have weighed on sales across the fast-food industry.

The burger chain aims for unit expansion to contribute nearly 2.5% to systemwide sales growth in 2027 and around 2% by 2030. It also targets operating margins in the low- to mid-50% range by 2030, compared with a total adjusted operating margin of 46.9% in fiscal 2025. The strategy follows disappointing second-quarter U.S. sales growth, as McDonald’s seeks to attract price-conscious consumers and strengthen its competitive position.

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