McDonald’s acquires cutting-edge artificial intelligence firm in $300m deal
McDonald’s has agreed terms to acquire personalisation technology provider Dynamic Yield.
Dynamic Yield’s technology will be used to customise McDonald’s menu displays based on variables such as the time of day, weather and trending menu items, as well as the customer’s past choices.
The $300million (£227million) deal, McDonald’s biggest purchase in 20 years, will allow the technology to eventually be integrated into digital customer experience touchpoints, such as self-order kiosks and McDonald’s global mobile app.
McDonald’s tested the technology in several of its US restaurants last year and plans to roll it out at its drive-thru locations in the US in 2019. It will then expand its use overseas.
Steve Easterbrook, McDonald’s president and chief executive, says: “Technology is a critical element of our Velocity Growth Plan, enhancing the experience for our customers by providing greater convenience on their terms. 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 personalised experiences for our customers.”
Liad Agmon, co-founder and chief executive of Dynamic Yield, adds: “We’re thrilled to be joining an iconic global brand such as McDonald’s and are excited to innovate in ways that have a real impact on people’s daily lives.”
Following the deal, McDonald’s will become sole owner of Dynamic Yield and will “continue to invest” in the business.
McDonald’s operates 38,000 locations in more than 100 countries. It franchised its first outlet in the UK in 1986 and over 80 per cent of its UK stores are operated by franchisees. It typically costs upwards of £350,000 to buy a McDonald’s franchise, at least 25 per cent of which must be provided upfront in unencumbered funds.
