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Finwire

Finwire

McDonalds targets higher margin with new strategy

Burger giant McDonalds presents new financial targets as part of the NEXT strategy, which was launched in June.

The company is targeting an operating margin in the low- to mid-50 percent range by 2030 and free cash flow conversion of 85-90 percent. Expansion of the restaurant network is expected to contribute nearly 2.5 percent to systemwide sales growth in 2027 and around 2 percent in 2030.

McDonalds expects annual base investments of approximately 3 billion dollars in 2027-2030, as well as a total of 1.5-2 billion dollars in additional support to accelerate the rollout of NEXT.

The company plans to provide franchisees with a total of approximately 8.5 billion dollars in support through 2036, of which approximately 5 billion will be provided by 2030.

The stock is up slightly in premarket trading, but is down 18 percent this year.

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