McDonald's will outline its next growth phase on Wednesday during an investor day in Chicago, as the chain pushes to reverse declining U.S. traffic and quiet investor doubt. The presentation will detail McDonald's > NEXT, a strategy built on updated restaurant designs, sharper menu quality, and better value pricing. Executives are under pressure to prove the plan can restore sales after a recent quarter that saw same-store sales rise just 0.8% and customer visits drop. Over the past 12 months, the company's stock has fallen 18%, trimming its market value to about $175 billion.

Price remains the central battleground in a customer base that is shrinking and highly cost-conscious. Competitors like Taco Bell and Chili's have captured more diners recently, while McDonald's value promotions got lost in other marketing messages. Franchisees have also resisted deep discounts because they squeeze operator profits while beef costs stay high. Only about two-thirds of U.S. locations rolled out a recent "under $3 menu" in August. The company allows franchisees to set their own prices but will likely stress that following corporate pricing guidelines matters for contract renewals. "We expect MCD to use this event to make it clear to franchisees that adherence to pricing recommendations will be a key factor in evaluating agreement renewals," Citi Research analyst Jon Tower wrote in a client note. Tower also cut his price target to $310 per share from $345, citing worries about franchisee support for the overall plan.

Beyond pricing, McDonald's plans to pull customers back with better-tasting food and a wider drink selection. The chain is moving toward hand-breaded chicken to compete with fast-food rivals like Chick-fil-A, Raising Cane's, and Popeyes. The technique takes more time and staff, but it produces a crispier coating that matches customer expectations. McDonald's is also expanding its beverage lineup with crafted sodas, refreshers, and energy drinks across the U.S. and in markets like Germany. "What's important — we'll talk a lot more about this at investor day — is beverages," Chief Financial Officer Ian Borden said in August.

The growth strategy also triggers a new wave of restaurant renovations, with franchisees already previewing updated layouts. The chain typically requires location updates every decade to refresh aesthetics and install newer technology. Franchisees usually cover these upgrades, but high borrowing rates, construction costs, and energy prices are making the work more expensive. BMO Capital Markets analyst Andrew Strelzik projects that capital spending could jump $600 million to $900 million in 2027 and 2028 compared to 2026 levels. Executives are expected to share exact renovation cost estimates on Wednesday.

To offset the heavier spending on remodels, McDonald's plans to trim operational costs elsewhere. The company will present its outlook for general and administrative expenses at the investor day. Bernstein analyst Danilo Gargiulo noted the chain may aim to keep those costs below 2% of systemwide sales, down from the current 2.2% target. McDonald's has already reduced its workforce through recent internal restructuring. The company will also cut overhead by selling more company-owned restaurants to franchisees, shifting daily operations and capital costs to local operators. Borden confirmed the chain will provide additional refranchising details during the presentation.