McDonald's revamps growth strategy amid fast-food competition
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McDonald's unveiled its new growth strategy in Las Vegas on June 1. Photo: Spencer Jones/GHI/UCG/Universal Images Group via Getty Images
McDonald's is redesigning its growth strategy with a plan emphasizing modern and more efficient restaurants and menu innovation.
Why it matters: Intensifying competition and changing customer expectations are raising the stakes for fast-food chains.
Driving the news: McDonald's on Monday unveiled McDonald's > NEXT, a new strategy designed to drive growth and improve restaurant economics.
- The strategy was introduced to franchisees, suppliers and employees at the company's Worldwide convention in Las Vegas.
- It succeeds Accelerating the Arches, the company's previous growth plan in place since the end of 2020, which focused on marketing, menu staples and expanding digital, delivery and drive-thru channels.
The big picture: McDonald's > NEXT is built around four pillars: menu innovation, connecting with consumers, improving productivity and efficiency at restaurants, and finding new ways to provide hospitality with diners as the restaurant experience becomes more automated.
- The company is "innovating in spaces where we see growth potential and know matter to our customers, like chicken, beef and beverages," Jill McDonald, McDonald's global chief restaurant experience officer, said in a statement.
- "We're creating feel-good moments for customers and crew by making our restaurants easier to run and more enjoyable to visit," she added.
Zoom out: The new strategy comes as McDonald's builds on recent momentum driven by value meals, loyalty perks and menu innovation.
- The company reported stronger first-quarter sales growth in its most recent earnings report.
Between the lines: McDonald's is signaling that future growth won't come from burgers alone.
- The company is placing bigger bets on high-growth menu categories as it looks for new avenues of growth beyond its core burger business.
- "Traditional competitors are upgrading their menus, and a new wave of specialists are emerging and redefining taste and quality across chicken, beef, and beverages," CEO Chris Kempczinski said in a message announcing the strategy.
What we're watching: Additional details, including financial information, are expected at a McDonald's investor event in September.
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