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McDonald’s is preparing to give investors a closer look at its plan to win back diners during an investor day Wednesday in Chicago. The event arrives with its U.S. business under pressure and shareholders looking for evidence that management can restore momentum.

The company introduced its global growth plan, McDonald’s > NEXT, in June during its biennial worldwide convention for franchisees. Its main elements include a new restaurant design, better tasting food and drinks, and innovation shaped by consumer demand.

Executives have provided few additional details since the plan was unveiled, reserving more information for the investor presentation. The event comes nearly three years after the company’s previous investor day.

McDonald’s most recent U.S. quarterly performance disappointed investors. Same store sales increased only 0.8%, while customer traffic at its restaurants declined.

CEO Chris Kempczinski attributed the trouble to execution shortcomings, including inconsistent implementation of value offerings, rather than a failure of the broader strategy. Skye Anderson, who was named president of McDonald’s U.S. business following the weak quarter, is likely to speak Wednesday.

The management team must address growing skepticism about whether the fast food giant can bring diners back in the near term. Over the past 12 months, McDonald’s shares have fallen 18%, reducing the company’s market value to about $175 billion.

That performance contrasts sharply with the S&P 500, which has risen 16% during the same period. Optimism surrounding artificial intelligence has helped offset investor concerns about consumers’ financial health.

Value is expected to command substantial attention during the presentation. Restaurants have spent the past two years competing for a smaller group of customers who remain focused on both price and the quality of their experience.

Taco Bell and Chili’s have thrived in that environment, while McDonald’s has recently struggled to make its value offerings stand out among other promotional messages. Analysts expect the company to keep emphasizing affordability, but franchisee cooperation will be essential.

Operators have resisted some discounts because those promotions can lift sales while reducing franchisee profits, particularly as elevated beef prices increase expenses. Only about two thirds of McDonald’s U.S. franchisees implemented its recent “under $3 menu,” executives said in August.

McDonald’s permits franchisees to establish their own prices, although the company evaluates how those menu prices deliver value to customers. Citi Research analyst Jon Tower expects management to press operators on the issue.

“We expect MCD to use this event to make it clear to franchisees that adherence to pricing recommendations will be a key factor in evaluating agreement renewals,” Tower wrote in a note to clients. He also reduced his McDonald’s price target to $310 per share from $345, citing investor concerns about franchisee support for the broader strategy.

Menu quality will be another focus as McDonald’s tries to attract diners with better taste. The chain has added more chicken options in recent years as beef prices have increased and competitors such as Chick-fil-A threaten sales.

Executives told franchisees at the convention that the next version of its chicken products will be breaded by hand. Chick-fil-A, Raising Cane’s and Popeyes use hand breading or batter rather than machines, a method that typically creates a crispier exterior but requires additional labor and time.

Beverages are also becoming more important to McDonald’s strategy. After winding down CosMc’s, its beverage oriented spinoff, the company introduced crafted sodas, refreshers and energy drinks in the U.S., while several international markets, including Germany, expanded their drink selections.

Restaurant renovations could add another costly element to the strategy. McDonald’s generally requires franchisees to remodel locations about once every decade to meet updated aesthetic guidelines and improve equipment and technology.

Franchisees received an initial look at the new design during the convention. McDonald’s typically contributes some support, but operators must finance renovations while borrowing costs remain elevated and tariffs and high energy prices push construction expenses higher.

BMO Capital Markets analyst Andrew Strelzik estimated that the remodel program could increase McDonald’s capital expenditures by $600 million to $900 million in 2027 and 2028 compared with projected 2026 spending. Executives are expected to provide the company’s own cost projections Wednesday.

McDonald’s is also expected to discuss potential savings, including its outlook for general and administrative spending. Bernstein analyst Danilo Gargiulo wrote that the company could target G&A expenses below 2% of systemwide sales, compared with its current 2.2% goal.

The company may reduce costs indirectly by refranchising some company owned restaurants. Selling those locations to franchisees would transfer the operating costs and required capital spending, and Chief Financial Officer Ian Borden has said McDonald’s will provide more details at the investor day.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.