McDonald's Tries Selling Ad Space on Its Drive-Thru Screens as Wall Street Trims Targets
Published on 09/22/2026 at 08:01 | Editorial boerse-global.de
McDonald's is testing whether the screens that take your order can also sell you something else. The burger giant has begun a pilot in selected US restaurants that markets advertising slots on its digital menu boards to outside companies, according to Bloomberg. The spots, including those in the drive-thru lane, appear once a customer has finished ordering — turning a routine transaction into a captive audience for consumer-goods brands and service providers.
The scale of that audience is the pitch. McDonald's restaurants serve roughly 26 million customers a day in the US alone, and the chain reaches nearly 90% of the American population over the course of a year. Digital screens have been part of the estate for about a decade, with more than 11,000 US ordering stations fitted by 2019. Retail media remains a young business in fast food compared with mainstream retail, where McKinsey estimates such ad revenue already contributes between 3% and 10% of total profit.
A New Revenue Stream Arrives at an Awkward Moment
The timing is no accident. Growth in the core US business has cooled sharply: same-store sales there rose just 0.8% in the second quarter of 2026, down from 2.5% a year earlier, and guest counts slipped. Systemwide sales for the quarter came to $37 billion. The loyalty program remains a bright spot, with more than 220 million active members, but RBC analyst Logan Reich does not expect a meaningful recovery in comparable sales before the first quarter of 2027.
Against that backdrop, management takes the stage at its investor day on Wednesday, where the focus will be on reigniting the restaurant business.
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UBS Cuts Its Target, Keeps Its Rating
Sentiment on the Street has been shifting. UBS analyst Dennis Geiger trimmed his price target on McDonald's to $320 from $340 while maintaining a "Buy" rating, citing persistent US sales challenges and broader valuation pressure across the quick-service sector. The Swiss bank's move follows RBC, which recently lowered its own target to $290 with a "Sector Perform" rating.
The caution reflects a US consumer that has pulled back, particularly lower-income diners who have been cutting visits for months. Industry-wide cost inflation — beef above all — has narrowed the room for discounting. Geiger, though, argues the current valuation already prices in much of the risk: at roughly 18 times consensus earnings estimates for 2027, the stock sits near the bottom of its historical range.
Shares have felt the strain. McDonald's is down 18% year to date, closing at EUR 216.00 in the previous session and trading at EUR 215.80 in European dealing — barely above its 52-week low of EUR 215.00, a gap of just 0.4%.
What to Watch at the Chicago Investor Day
Attention now turns to the September 23 investor day in Chicago, where shareholders want concrete answers on the weak US traffic trend. Management is expected to present its "McDonald's NEXT" growth strategy, built on four pillars: menu, consumer engagement, restaurant formats and staffing.
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Analysts anticipate an upward revision to global expansion targets, which currently call for about 50,000 locations by 2028, alongside modernization plans for US restaurants. UBS expects the company to offer franchisees less financial support for remodels than in previous upgrade cycles. Abroad, the expansion push continues — in China, the network is slated to reach 10,000 restaurants by 2028.
Whether advertising revenue can meaningfully shore up margins is a question the pilot will have to answer first.
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