CHICAGO, Illinois: McDonald's unveiled new long-term growth and profitability targets on September 23 alongside a US$8.5 billion support package for franchisees, as the fast-food giant warned that customer traffic in key markets could remain subdued while inflation stays elevated.

Shares of the company fell about five percent as the warning raised concerns that its recovery could take longer than expected.

McDonald's provided the first detailed roadmap for its "NEXT" strategy, announced in June, which focuses on food quality, hospitality, value, and innovation. The company has been trying to revive growth following several quarters of slowing sales and stronger competition from rivals emphasizing value.

Last month, McDonald's missed estimates for second-quarter U.S. sales growth and cited execution problems that hampered its efforts to bring back lower-income customers who had reduced spending on eating out.

Skye Anderson, who was appointed president of the company's U.S. business last month, acknowledged on September 23 that McDonald's had fallen short on "consistent execution" and said restaurant operations needed to improve.

"The winners will be the companies that create more demand and deliver it more efficiently," CEO Chris Kempczinski said during the investor meeting.

The NEXT strategy includes simplifying restaurant operations, modernizing designs and investing in employee training. McDonald's also plans to expand ArchIQ, its AI-powered restaurant operating system that automates tasks including drive-thru ordering.

The company is also considering changes to its menu as consumer preferences evolve. Anderson said McDonald's was responding to demand from GLP-1 users seeking more protein and greater flexibility in portion sizes. It is exploring options, including bowls, grilled chicken, and egg bites, for breakfast, lunch, and dinner.

"Consumers are making choices based on more than price, and McDonald's needs to give them reasons to visit beyond a deal," eMarketer analyst Suzy Davidkhanian said.

Under the new plan, McDonald's outlined $8.5 billion in support for franchisees over the next decade, with about $5 billion expected to be deployed by 2030 through rent relief and capital support.

The company is targeting operating margins in the low- to mid-50 percent range by 2030. It expects the strategy to improve restaurant-level efficiency by 250 basis points and generate about $100,000 in additional annual cash flow for the average U.S. restaurant.

McDonald's also expects restaurant expansion to contribute about 2.5 percent to systemwide sales growth in 2027 and around two percent by 2030.