McDonald’s plans $8.5 billion franchisee support through 2036

McDonald’s said Wednesday it plans to provide about $8.5 billion in support to franchisees through 2036, including roughly $5 billion by 2030, to help modernize restaurants and advance its McDonald’s NEXT growth strategy. The company said the funding will come through rent relief and capital contributions, alongside investments by franchisees in upgrades and operational changes. The plan covers equipment and design improvements, technology deployment and changes intended to improve restaurant operations. McDonald’s said the upgrades are expected to generate efficiency gains of about 250 basis points. It estimates those gains could add roughly $100,000 in annual cash flow for a typical U.S. restaurant, with franchisees expected to recoup their net investment in about four years after company support is taken into account. Those figures are company projections, not reported results. Franchisees will also face modernization costs beyond their usual store remodels, according to one account of the plan. McDonald’s said it would contribute toward those costs through rent relief and capital support, but detailed franchisee-level funding terms were not provided.