More tech and hand-breaded chicken coming to McDonald’s as part of $8.5B modernization push

McDonald's said Wednesday it will spend $8.5 billion over the next decade to modernize its restaurants globally.

Fast-food traffic in many markets, including the U.S., is flat, so for McDonald's to continue to grow it has to grab share from competitors and improve restaurant productivity, McDonald's Chairman and CEO Chris Kempczinski said at a meeting with investors at the company's Chicago headquarters. McDonald's wants to automate more tasks, like inventory and scheduling, and improve kitchen operations.

"The winners will be the companies that create more demand and deliver it more efficiently," Kempczinski said.

McDonald's shares fell nearly 5% Wednesday, their largest percentage drop since April 2025, as investors shuddered at the eye-popping price of improving McDonald's 46,000 global stores.

On the product side, McDonald's said hand-breaded chicken, which has rolled out at 10,000 restaurants in Asia and a handful of restaurants near Chicago, has boosted sales and quality ratings. Many of McDonald's competitors, like Chick-fil-A and KFC, offer hand-breaded chicken. The company plans to expand its testing to more markets in the U.S. and Ireland next year.

McDonald's also plans to introduce grilled chicken sandwiches and wraps in the U.S. and other markets and experiment with products like egg bites and bowls to meet the needs of customers who are seeking more protein and varied portion sizes.

Skye Anderson, the president of McDonald's USA, said approximately 30 million Americans are now using GLP-1 weight loss drugs, and they're seeking smaller, more protein-packed meals as a result. But the company's research indicates that 60 million Americans are actively seeking more protein in their diet.

"This is an opportunity. We need to keep giving them more reasons to make McDonald's their first choice," Anderson said at McDonald's investor day.

McDonald's said the restaurant modernizations include lockers to handle delivery orders, more visible coffee preparation areas to enhance quality perceptions, bigger play areas and improved kitchen layouts. Scales to help ensure order accuracy - which are already in use at 10,000 restaurants globally - will be in 20,000 restaurants by 2028, McDonald's said.

The company is deploying its ArchIQ system, developed with Google, that improves order accuracy with artificial intelligence and automates tasks like inventory management and scheduling. Archy, the company's AI-enabled drive-thru ordering system, is now capable of taking orders in Spanish and English with a 90% accuracy rate.

Archy could eventually reduce at least 50 labor hours per week in a typical McDonald's, Chief Financial Officer Ian Borden said.