McDonald's is set to hold an investor day in Chicago amid struggles in its U.S. business, which recently reported only a 0.8% increase in same-store sales and declining customer traffic. The event will provide more insight into the company’s McDonald’s > NEXT growth strategy, initially unveiled in June, which aims to revitalize its brand through updated restaurant designs, improved menu items, and consumer-focused innovation. Despite the strategic overhaul, CEO Chris Kempczinski attributes the disappointing quarter to execution issues rather than the plan itself. New U.S. president Skye Anderson will likely play a key role in addressing these challenges and engaging skeptical investors.

A central focus will be McDonald’s value strategy, which has faced hurdles as value menus became crucial in a competitive fast-food market. The company’s recent under $3 menu was only adopted by about two-thirds of franchisees, reflecting resistance due to profit margin pressures, especially with rising beef prices. McDonald’s grants franchisees control over pricing, but plans to emphasize the importance of aligning with company pricing recommendations, potentially tying this compliance to franchise agreement renewals. Investors remain cautious, with Citigroup lowering its price target partly due to concerns about franchisee cooperation.

Alongside value, menu innovation will be highlighted, particularly an increased emphasis on chicken offerings, with McDonald’s preparing to introduce hand-breaded chicken to compete with brands like Chick-fil-A. Additionally, beverages have become a growth area, with expanded offerings including crafted sodas, refreshers, and energy drinks launched domestically and in markets like Germany. CFO Ian Borden underscored that beverages would be a major topic at the investor day, reflecting the company’s efforts to diversify and enhance its menu appeal.

McDonald’s will also address plans for remodels, which typically happen every decade to update restaurant aesthetics and technology. The refresh entails significant costs, potentially increasing capital expenditures by $600 million to $900 million over 2027 and 2028, a concern given current high borrowing and construction expenses. However, the company expects to offset some costs by cutting general and administrative expenses and continuing its refranchising efforts to transfer operational and investment burdens to franchisees. Executive projections on these financial moves will be a key part of the presentation's outlook.