McDonald’s is testing an advertising business by selling ads on its menu boards and screens

# What McDonald's is testing

# Why the company is pursuing this McDonald's positions the effort as a low-cost way to generate system revenue. Global Chief Marketing Officer Morgan Flatley told investors the opportunity involves "little in the way of additional costs, no operational complexity, and no disruption to our customer experience." The chain's scale—more than 46,000 locations globally, 13,700 in the U.S., and about 70 million customers served each day—gives it a large built-in audience.

# How this fits into broader trends

# What McDonald's hopes to achieve The company says the network could ultimately generate around $1 billion in annual revenue. That estimate relies on three basic strengths: the chain's real estate (tens of thousands of physical locations), the frequency of visits, and existing digital screens in drive-thrus and dining areas where ads can be displayed without changing operations.

# Immediate implications for restaurants, brands, and customers

• Restaurants: The approach is framed as operationally light—advertising would run on screens already in place and is intended not to disrupt the guest experience. Franchisees' roles or revenue splits are not detailed in the provided coverage.
• Brands and advertisers: A new channel for audience reach at point-of-sale and in moment-of-purchase environments. Non-competing advertisers could buy placements to reach drive-thru and dining customers.
• Customers: The pilot will introduce third-party ads into the ordering environment. How consumers react—positively, negatively, or indifferently—is not yet reported.

# How McDonald's compares to other players Retailers and convenience chains have already developed media networks and proven they can scale advertising revenue. McDonald's differs by operating in the restaurant sector with heavy reliance on quick service and drive-thru ordering, which presents unique inventory (menu boards and screens) and moment-based advertising opportunities that other retailers don't offer.

# What to watch next

• Pilot scale and duration: whether McDonald's expands beyond the 450 test sites.
• Revenue mechanics: pricing, targeting capabilities, data usage, and how ad revenue is shared with franchisees.
• Consumer response and any operational impacts: changes to order times, customer satisfaction, and staff workflow.
• Competitive moves: whether other large restaurant chains accelerate similar media offerings.

McDonald's is moving into an area many retailers have already monetized: selling ad placements across owned customer touchpoints. The company emphasizes scale and low incremental cost as the rationale for pursuing an estimated $1 billion opportunity, but broader rollout will depend on pilot results and how the network is structured for advertisers and franchise stakeholders.