McDonald's 2026 capital plan and franchise funding, explained

McDonald's annual filing for 2025 projected $3.7 billion to $3.9 billion in capital spending for 2026, with most directed toward new restaurants in the U.S. and International Operated Markets.

The opening plan covered approximately 2,600 restaurants globally: about 750 in those two segments, and more than 1,800 with capital from developmental licensees and affiliates. That global plan includes restaurants funded outside McDonald's corporate budget. Annual outlook

The outlook specifies the expansion priority without assigning separate amounts to technology, remodels or improvements at company-operated restaurants.

Franchise funding varies. In conventional arrangements, McDonald's generally owns or leases the land and building; franchisees pay for equipment, signs, seating and décor. Operators must reinvest, while McDonald's may co-invest in restaurant or operating-system improvements.

Developmental licensees and affiliates supply capital, including real estate, and McDonald's generally invests no restaurant capital under those arrangements. Franchise funding models

September's franchise support plan#

A later announcement on September 23, 2026, set out support under McDonald's NEXT strategy. The company plans approximately $8.5 billion through 2036, including about $5 billion through 2030, combining rent relief with capital support for modernization, technology and operational improvements. NEXT announcement

That package spans multiple years and includes relief from rent payments. Adding it wholesale to a single year's capital budget would mix different periods and forms of assistance.

For 2027 through 2030, at then-current exchange rates, McDonald's separately outlined about $3 billion in annual baseline capital expenditures, plus $1.5 billion to $2 billion in cumulative capital partnering support. Markets will sequence NEXT work around franchisee capacity and investment returns, the company said. Its broader NEXT plan describes the restaurant changes those investments are intended to support.

Burger King's remodel co-investment#

Burger King announced a $300 million expansion of its U.S. Royal Reset program on April 30, 2024. Royal Reset 2.0 offered cash incentives for qualifying franchisee remodels and rebuilds, aiming to support about 1,100 additional remodels through 2028. It covered non-Carrols restaurants, separate from the planned $500 million modernization of the Carrols portfolio. Program announcement

The terms allowed participating franchisees to accept a higher royalty rate in exchange for a larger capital contribution. The opt-in deadline was October 31, 2024.

Burger King also explained the franchisor's accounting. At remodel completion, the investment would appear as an operating cash outflow through changes in other long-term assets and liabilities. A royalty credit would reduce reported franchise and property revenue over the agreement, for up to 20 years. This is franchisee investment support that a comparison limited to corporate capital-expenditure totals can miss.

Funding reported in August 2026#

Burger King's parent, Restaurant Brands International, subsequently reported on August 6, 2026, that it had funded $194 million of up to $550 million planned for Royal Reset as of June 30. That total covers the broader program, including remodels, relocations, restaurant technology, kitchen equipment and building enhancements. Second-quarter update

Royal Reset sits within Reclaim the Flame, a plan for up to $700 million through 2028. The larger figure also includes advertising and digital investments completed in 2024. RBI reports its Burger King franchisor business separately from Restaurant Holdings, the segment containing the acquired Carrols restaurants. RBI said it intends to refranchise the vast majority of those Burger King restaurants, moving them back to franchisee ownership.