McDonald's to spend $8.5 billion on hand-breaded chicken and AI drive-throughs to claw back market share from KFC

From the Newshound archive · first published 23 September 2026 · last updated 24 September 2026.

McDonald's shares fell 5% in their steepest single-day decline in six years after CEO Chris Kempczinski unveiled an $8.5 billion overhaul designed to capitalise on the fast-expanding chicken market. The chain plans to bring hand-breaded chicken — currently on trial in 10,000 Asian restaurants and a handful of Chicago outlets — to US and Irish markets next year. Kempczinski told investors that chicken is growing at twice the rate of beef, and that McDonald's wants to capture an extra 1.5 percentage points of the global chicken market by 2030.

McDonald's currently holds only a 'high teens' share of the chicken market, against roughly 45% in beef — a disparity it is now moving urgently to narrow.

The chain intends to automate drive-through ordering and back-office functions such as shift scheduling and stock management, as stagnant customer traffic pushes it to seek greater efficiency.

Climbing beef costs are eating into franchisee margins, while KFC, Popeyes and Wingstop have all surged in popularity among Gen Z consumers who favour fried chicken over burgers.