On March 26, McDonald’s (MCD) announced that it had signed an agreement to acquire Dynamic Yield, a decision logic technology company, for $300 million.
McDonald’s will be utilizing Dynamic’s decision technology to provide a more personalized experience to its customers by varying digital menu items at its drive-thru restaurants depending on the time, weather, trends, and the current restaurant’s traffic. The technology will also suggest and display additional menu items based on the customer’s current selection, thus driving the company’s sales.
McDonald’s tested this technology in some of its restaurants in 2018. Upon closing the deal, the company will implement the decision logic technology in the drive-thrus at its restaurants located in the United States, and it will later expand to its international restaurants.
In a written statement, Steve Easterbrook, McDonald’s president and CEO, said, “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.”
After McDonald’s announced its acquisition of Dynamic Yield on March 26, its stock price rose to a high of $188.88 before closing the day at $187.48, up 1.0% from its previous day’s closing price. Since the beginning of 2019, McDonald’s stock has risen 5.6%.
In comparison, its peers Starbucks (SBUX) and Dunkin’ Brands (DNKN) have returned 13.3% and 13.8% year-to-date, respectively. The Consumer Discretionary Select Sector SPDR ETF (XLY) has returned 13.9% during the same period.