McDonald’s may be ranked America’s top fast-food chain, but their billion-dollar gamble tells a different story. The company plans to invest $8.5 billion by 2036 to help their franchise locations stave off the competition. Of that total, $5 billion will go toward rent relief and capital support of franchisees over the next three years, which suggests many locations may be under pressure regardless of the company’s overall sales. 

Years ago, the Big 3 Rivalry included McDonald’s, Burger King, and Wendy’s. A company that primarily sold burgers and fries only competed with those who did the same. Today, the definition of “fast-food” has evolved and now two coffee companies, a chicken joint, and a taco chain are McDonald’s fiercest competition. Starbucks, Chick-Fil-A, Taco Bell, and Dunkin’ round out the top 5 fast-food chains based on overall sales. Wendy’s and Burger King are gaining ground and ranked in 6^th place and 8^th place respectively. 

With the competition growing, how can McDonald’s maintain their top spot? Over the coming years, the company’s NEXT strategy will include renovating restaurants, retraining employees, and introducing new menu items aimed protein-focused customers. They launched their Make It Golden training program last week and are now introducing team members to ArchIQ, an AI operating system developed by McDonald’s through their partnership with Google. “Archy” was designed to make the restaurant run more efficiently and elevate the customer experience. 

McDonald’s initiative sounds promising, but they are making a billion-dollar gamble at a time when people are eating out less, watching prices, and focused on healthier eating. Gone are the days of the $3 meal; today a burger, fries, and a drink can cost up to $13, which most families can’t afford. McDonald’s has a plan for that too.