McDonald's Stakes $8.5 Billion on Franchisees and Ad Revenue as US Traffic Sags
Published on 09/28/2026 at 15:11 | Editorial boerse-global.de
McDonald's is asking investors to look past a soft patch in its home market and toward a decade-long spending plan, but Wall Street is proving hard to convince. The burger chain's shares have shed 21% since the start of the year, and on Friday the stock closed at EUR 207.60, hovering just above its 52-week low of EUR 205.80.
The pressure intensified after management told an investor gathering that US comparable sales would likely come in "slightly negative" for the current quarter. That guidance, coupled with a growth blueprint that offered few surprises, prompted a fresh round of target cuts from analysts.
A $8.5 Billion Bet on the Franchise Network
At the center of the company's long-range strategy sits a reinvestment program worth $8.5 billion through 2036. The bulk of that sum — roughly $5 billion over the next three and a half years — is earmarked for franchisees, delivered as a blend of capital support and rent relief. The remaining funds will go toward restaurant modernization, new menu items aimed at protein-conscious diners, and training for two million employees. That training initiative, branded "Make It Golden," kicks off on October 5.
McDonald's is also chasing revenue beyond the burger counter. Its "McDonald's Media Network" is being built into a standalone advertising business, selling space on digital drive-thru displays and other in-restaurant digital channels. A pilot launched in August across 450 company-owned US locations, and management expects the operation to scale into a billion-dollar segment.
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On the cost side, the chain wants to bring administrative and selling expenses down to 1.9% of systemwide sales by 2030, from the 2.2% projected for 2026. Longer term, management is targeting operating margins in the low-to-mid 50% range by the end of the decade.
Wall Street Trims Its Expectations
The muted sales outlook drew immediate responses from the analyst community. JPMorgan lowered its price target on Thursday to $260 from $280 while keeping an Overweight rating; analyst John Ivankoe characterized the strategic plan as light on surprises and pointed to a more measured pace of expansion in the years ahead. TD Cowen followed the same day, according to media reports, cutting its target to $270 from $282 and maintaining a Hold rating.
RBC Capital Markets weighed in on Thursday as well, cautioning that US same-store sales would stay under pressure until the chain's value proposition regains traction with lower- and middle-income diners. Development targets that fell short of market expectations added to the cautious mood.
Discounts, Monopoly and a Dividend Streak
To reignite foot traffic, McDonald's is reworking how it prices its food. Bloomberg reported that the company is collaborating with franchisees on a longer-term US value strategy, with a stopgap plan featuring limited-time menu items and digital discounts meant to pull price-sensitive customers back through the doors.
A familiar promotion returns as part of that push. The Monopoly game launches in the US on October 6 and runs through November 1, with game pieces this time scanned through the company's app. Prizes include physical goods, cash rewards and loyalty points.
Shareholders, meanwhile, continue to collect a rising payout. On September 17, the board approved a 4% increase in the quarterly dividend to $1.93 per share, payable in December — marking a 50th consecutive year of dividend growth. For now, though, management's priority is clear: steadying demand in the US, where cost-conscious diners have yet to be won back.
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