McDonald's Dynamic Performance Acquisition to Customize Driver's Service Menus

McDonald's Corp., as part of its largest acquisition in 20 years, buys a decision logic technology company to better customize the menus in its digital push.

The largest restaurant chain in the world spends more than $ 300 million on Dynamic Yield Ltd., according to someone close to the issue. Thanks to new technology, McDonald's restaurants can change the display of items on their electronic menus based on factors such as weather: more coffee on cold days and McFlurries on hot days, such as the time of day or regional preferences. The menus will also offer complementary elements to the customers.

Since taking office in 2015, Chief Executive Officer Steve Easterbrook has been pushing technology, including kiosks for online ordering, digital menus and delivery, to boost sales and support. McDonald's to stand out from the competition. Since McDonald's rarely makes acquisitions, the purchase of Dynamic Yield demonstrates the company's desire to leverage technology to accelerate growth in the highly competitive foodservice industry.

"Technology is an essential part of our plan for rapid growth," Easterbrook said in a statement. He added that McDonald's is expanding the role that technology would play in McDonald's future "and how quickly we can implement our vision of creating more personalized experiences for our customers."

McDonald's tested the Dynamic Yield technology in the United States in 2018 and will introduce it more widely this year into the drive-thru menus once the deal is complete. The company also plans to expand its capacity to foreign markets. This is the largest transaction for the Chicago chain for about 20 years, when she became an investor in Chipotle Mexican Grill Inc. She has since divested her stake in the burrito chain.

This agreement allows McDonald's to become the sole owner of Dynamic Yield, based in New York and Tel Aviv. The hamburger chain, which has 38,000 stores, will continue to invest in Dynamic Yield, which will remain a standalone company. The Dynamic Yield website indicates that customers include Urban Outfitters Inc., Ikea and HelloFresh.