McDonald’s announced plans to acquire a tech company — its largest deal in 20 years — as it continues to push its U.S. locations into the digital … The fast food restaurant is operated by many types of business venture like franchisee, affiliate or the corporation itself. “Technology is a critical element of our velocity growth plan,” Easterbrook said in a statement. Acquisition fast-tracks McDonald's digital transformation . McDonald’s Corp. is buying Israeli digital startup Dynamic Yield Ltd., in a bid to improve in-store ordering and online marketing at the burger giant. We offer a discounted rate through Student Beans for students with a valid .edu email address. Image source: https://corporate.mcdonalds.com/corpmcd/about-us/our-business-model.html. The company also plans to expand the capability to markets abroad. He said McDonald’s is expanding the role that technology will play in the company’s future “and the speed with which we’ll be able to implement our vision of creating more personalized experiences for our customers.”. In recognition of the need to stay on the cutting edge, McDonald's recently acquired two tech companies that use predictive analytics and mobile software to improve the customer experience. McDonald’s is the largest fast food restaurant chain that serves approximately 47 million customers daily. However, this company didn’t grow quickly and reached where they are now due to hard work and effective marketing strategies. McDonald's New Tech is About to Change the Restaurant Industry There's a good reason the brand spent $300 million on its first major acquisition in 20 years. Preexisting rivals like Burger King and Wendy's won't stay idle, either. At first glance, Dynamic Yield seems to provide a pretty narrow technology use case, but in fact, it helps influence customer behavior, which can have a profound impact on McDonald's sales and profitability. McDonald's Doubles Down on Tech With Voice AI Acquisition The Golden Arches will acquire Apprente, a "sound-to-meaning" voice assistant, to speed up its drive-through. With the new technology, McDonald’s restaurants can vary their electronic menu boards’ display of items, depending on factors such as the weather—more coffee on cold days and McFlurries on hot days, for example—and the time of day or regional preferences. news.com.au … The new agreement gives McDonald's a 9.9% stake in Plexure and the exclusive right to use the technology in the quick-service restaurant setting. The company used the acquisition as the foundation for the creation of McD Labs, which it hopes will … Please select at least one newsletter to subscribe. The technology will be used in its drive … The stock has gained almost 6% this year—about half of the S&P 500’s advance. McDonald's recently announced that they've agreed to acquire Dynamic Yield for $300 million. Market data powered by FactSet and Web Financial Group. The software sends promotional offers, facilitates mobile ordering, and manages a customer loyalty program, in addition to serving as the basic technology backbone of the mobile app. In early September, McDonald's went back for a second helping and acquired communication technology company Apprente. We’re focused on continuous transformation. The next quarter will see it growing McDonald’s Tech Labs in order to harness acquisitions and grow R&D. McDonald’s tested Dynamic Yield’s technology in the U.S. in 2018, and will more widely introduce it this year for drive-thru menus once the deal closes. The technology can understand multiple languages and accents to help speed and simplify order taking at the drive-thru. Luis Sanchez CFA has been a contributor to the Motley Fool since 2019. Since taking the helm in 2015, Chief Executive Officer Steve Easterbrook has pushed technology—including self-order kiosks, digital menus boards and delivery—to boost sales and help McDonald’s stand out among rivals. New York, NY 10017 Stock Advisor launched in February of 2002. In recent years, McDonald's has made several strides to upgrade its restaurants, including the development of the McDonald's mobile app, digital menu boards, and self-ordering kiosks. With the agreement, McDonald’s becomes the sole owner of Dynamic Yield, which is based in New York and Tel Aviv. In the case of McDonald's (NYSE:MCD), software is literally helping customers eat more. The world’s biggest restaurant chain is spending more than $300 million on Dynamic Yield Ltd., according to a person familiar with the matter. The 38,000-store burger chain will continue to invest in Dynamic Yield, which will remain a standalone company. Just two months after McDonald’s spent $300 million to acquire Dynamic Yield, a leader in personalization and decision logic technology, the fast-food giant is making another tech acquisition.. McDonald’s announced September 10 it entered into an agreement with Apprente, an early stage leader in voice-based, conversational technology. McDonald’s has made its third technology acquisition this year after snapping up a firm whose software will enable greater levels of automation between its drive thrus and kitchens. Once the acquisition is complete, the technology will be rolled out to drive-thru windows and digital kiosks inside stores across the United States. Dynamic Yield is a "personalization and decision logic technology" company. Since McDonald’s seldom carries out acquisitions, the purchase of Dynamic Yield shows the company’s desire to leverage technology to speed growth in the fiercely competitive restaurant industry. Baird analyst David Tarantino said he sees “strategic value” in the deal, especially as McDonald’s tries to accelerate its growth and “elevate the customer experience.” He said the deal could be “slightly dilutive in the early stages.”. The software personalizes the way a menu appears to a customer based on several factors, including the time of day, weather, popular items, and the customer's history of purchases. We’ll begin to roll this technology out at restaurants in the United States in 2019 and then expand the use to other top international markets. Cumulative Growth of a $10,000 Investment in Stock Advisor, Recent Acquisitions Could Give McDonald's a Technological Edge @themotleyfool #stocks $MCD, Better Buy: McDonald's vs. BJ's Restaurants, McDonald's Going After Chicken Chains With 3 New Menu Items, Copyright, Trademark and Patent Information. His investing interests include tech, consumer, and event-driven situations. Once the acquisition is complete, the technology will be rolled out to drive-thru windows and digital kiosks inside stores across the United States. Staying current is easy with Crain's New York news delivered straight to your inbox, free of charge. Plexure marks yet another way McDonald's is using technology and data analytics to personalize the customer experience. A menu that suits changing customer preferences and a focus on technology to improve restaurant efficiency are the two key pillars of McDonald’s … McDonald’s believes its acquisition of voice ordering technology company Apprente last month, since completed, will be another big long-term step. McDonald’s Corp., in its largest acquisition in 20 years, is buying a decision-logic technology company to better personalize menus in its digital … What are your goals for your team and for McDonald’s? 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