McDonald's franchisees are reportedly considering pushing back on the company's NEXT upgrade plan. A Guggenheim Securities analyst suggested operators may seek to cut the estimated $800,000 cost for each traditional U.S. drive-through restaurant by 20% to 40%.
Some operators have raised concerns about debt levels, financial risks and the scale of the proposed overhaul. McDonald's has projected that the operational and technological changes will produce significant efficiency gains and deliver a roughly four-year payback for franchisees.
McDonald's also faces a proposed class-action lawsuit filed recently in Illinois. The lawsuit alleges that the company's AI-enhanced pricing tools lead to unlawful price coordination among its independently owned and operated restaurants.
McDonald's has denied the allegations, saying its pricing tools provide optional recommendations and franchisees remain responsible for setting their own menu prices.