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MCD's AI Push Gains Steam: Is Restaurant Tech the Next Growth Driver?
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Key Takeaways
McDonald's is rolling out its "Edge" AI platform with Google to enhance restaurant operations.
Edge enables predictive maintenance, real-time insights and improved crew productivity.
Digital tools like "Ready on Arrival" and loyalty data fuel faster service and deeper engagement.
McDonald’s Corporation (MCD - Free Report) is accelerating its digital transformation through what it calls the “Accelerating the Arches” strategy — a long-term push to integrate artificial intelligence, data and automation across its global system.
At the heart of this initiative lies “Edge,” a new digital foundation developed in partnership with Google that brings cloud computing to the restaurant level. Currently live in hundreds of U.S. restaurants and beginning international deployment, Edge enables AI-powered operations, predictive maintenance and real-time decision-making. Management expects this to improve uptime, food quality and crew productivity.
McDonald’s also reported strong adoption of its geofencing technology through “Ready on Arrival,” which halves food pickup wait times in the United States and nearly eliminates them altogether in key markets. Combined with the company’s 185 million 90-day active loyalty users, these digital enhancements are creating an increasingly data-driven ecosystem that deepens engagement and boosts frequency.
Management noted that 2025-2027 will represent a key investment phase as McDonald’s scales AI integration across its consumer, restaurant and enterprise platforms. These initiatives are expected to boost cost efficiencies and margin expansion over time.
Peer Comparison
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) is advancing its multi-year transformation plan with an emphasis on data-driven personalization and operational modernization. In the third quarter of fiscal 2025, management highlighted continued momentum in the Cracker Barrel Rewards program, which is delivering a mid-single-digit lift in spend per member versus control groups.
The company is using customer data to tailor offers and improve engagement, while new digital tools are enhancing its ability to forecast traffic and optimize labor deployment at the store level. Additionally, Cracker Barrel continues to refine its kitchen and service workflows to drive consistency, speed and guest satisfaction. These initiatives, combined with disciplined cost management, are beginning to yield tangible productivity gains.
Papa John’s International, Inc. (PZZA - Free Report) is advancing its digital transformation through a comprehensive AI and cloud-based technology roadmap designed to reestablish the brand as a best-in-class QSR technology leader. Under its partnership with Google Cloud, Papa John’s is leveraging AI to power omnichannel customer experiences — including a next-generation app that uses predictive analytics to anticipate customer needs, personalize offers and optimize order flow.
Management emphasized that these initiatives are already improving CRM engagement, app conversion and repeat purchase rates. PZZA is also exploring voice AI for order automation, further streamlining the customer journey from “click to crust.” With nearly 70% of systemwide sales generated through digital channels, Papa John’s sees AI integration as a long-term catalyst for both revenue growth and operating efficiency.
MCD’s Price Performance, Valuation & Estimates
McDonald’s shares have declined 2.1% in the past three months compared with the industry’s 10.9% fall.
MCD Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MCD trades at a forward price-to-sales ratio of 7.52, significantly higher than the industry’s 3.42.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for McDonald’s 2025 and 2026 earnings per share implies a year-over-year uptick of 5.6% and 8.2%, respectively. The estimate for 2025 has been northbound in the past 60 days.
Image: Bigstock
MCD's AI Push Gains Steam: Is Restaurant Tech the Next Growth Driver?
Key Takeaways
McDonald’s Corporation (MCD - Free Report) is accelerating its digital transformation through what it calls the “Accelerating the Arches” strategy — a long-term push to integrate artificial intelligence, data and automation across its global system.
At the heart of this initiative lies “Edge,” a new digital foundation developed in partnership with Google that brings cloud computing to the restaurant level. Currently live in hundreds of U.S. restaurants and beginning international deployment, Edge enables AI-powered operations, predictive maintenance and real-time decision-making. Management expects this to improve uptime, food quality and crew productivity.
McDonald’s also reported strong adoption of its geofencing technology through “Ready on Arrival,” which halves food pickup wait times in the United States and nearly eliminates them altogether in key markets. Combined with the company’s 185 million 90-day active loyalty users, these digital enhancements are creating an increasingly data-driven ecosystem that deepens engagement and boosts frequency.
Management noted that 2025-2027 will represent a key investment phase as McDonald’s scales AI integration across its consumer, restaurant and enterprise platforms. These initiatives are expected to boost cost efficiencies and margin expansion over time.
Peer Comparison
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) is advancing its multi-year transformation plan with an emphasis on data-driven personalization and operational modernization. In the third quarter of fiscal 2025, management highlighted continued momentum in the Cracker Barrel Rewards program, which is delivering a mid-single-digit lift in spend per member versus control groups.
The company is using customer data to tailor offers and improve engagement, while new digital tools are enhancing its ability to forecast traffic and optimize labor deployment at the store level. Additionally, Cracker Barrel continues to refine its kitchen and service workflows to drive consistency, speed and guest satisfaction. These initiatives, combined with disciplined cost management, are beginning to yield tangible productivity gains.
Papa John’s International, Inc. (PZZA - Free Report) is advancing its digital transformation through a comprehensive AI and cloud-based technology roadmap designed to reestablish the brand as a best-in-class QSR technology leader. Under its partnership with Google Cloud, Papa John’s is leveraging AI to power omnichannel customer experiences — including a next-generation app that uses predictive analytics to anticipate customer needs, personalize offers and optimize order flow.
Management emphasized that these initiatives are already improving CRM engagement, app conversion and repeat purchase rates. PZZA is also exploring voice AI for order automation, further streamlining the customer journey from “click to crust.” With nearly 70% of systemwide sales generated through digital channels, Papa John’s sees AI integration as a long-term catalyst for both revenue growth and operating efficiency.
MCD’s Price Performance, Valuation & Estimates
McDonald’s shares have declined 2.1% in the past three months compared with the industry’s 10.9% fall.
MCD Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MCD trades at a forward price-to-sales ratio of 7.52, significantly higher than the industry’s 3.42.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for McDonald’s 2025 and 2026 earnings per share implies a year-over-year uptick of 5.6% and 8.2%, respectively. The estimate for 2025 has been northbound in the past 60 days.
Image Source: Zacks Investment Research
McDonald’s stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.