McDonald's Monopoly: Signs to buy tech company - biggest deal in 20 years
March 26, 2019 | Tuesday
Fast food chain giant, McDonald's in its largest deal in 20 years plans to buy a tech company. The announcement came as the company continues to boost its United States location towards the digital age.
On Monday, the company reveals its agreed plan to purchase Dynamic Yield. The said tech company is an expert in personalization and decision logic technology. In this deal, Dynamic Yield's tech expertise will enable McDonald's digital drive-thru menus. Customers taking the drive-thru are able to change various factors. For instance, base their food's state depending on the weather or the present traffic in the restaurant.
The recent deal is amounting at more than $300 million. That was McDonald's biggest deal so far in two decades.
By purchasing Dynamic Yield, McDonald's aim to widen its technological servicing within its restaurant locations. Since the beginning of 2019, the company planned to spent about $1 billion to improve around 2,000 restaurant locations within the United States. Renovations include additional self-serve kiosks and digital menu boards. Those are provided to develop sales to increase convenience to its customers.
However, there are a few franchisees complaining as the project comes expensive, getting thru the short-term sales with no payoff. Meanwhile, other investment including Mcdonald's mobile application backed the company's gain. It helped to access greater consumer data along its development.
Moreover, according to the company, it tested the said drive-thru technology within a few U.S. restaurant in 2018. This year, the company plans to implement the technology on other U.S. locations.
Steve Easterbrook, McDonald's CEO in a statement said, “With this acquisition, we’re expanding both our ability to increase the role technology and data will play in our future and the speed with which we’ll be able to implement our vision of creating more personalized experiences for our customers,”
As the $300 million deal came to an agreement, Dynamic Yield will still be a stand-alone company, continuing its service to its clients.