Bloomberg: McDonald's will buy a personalization technology developer for $ 300 million

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According to Bloomberg, McDonald's is close to completing its largest takeover in 20 years. The chain of fast food restaurants million will buy the company-developer of personalization technology menu Dynamic Yield Ltd. The amount of the transaction will be $ 300 million.
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Transaction Details

Journalists learned about the upcoming purchase from sources “intimately familiar with the situation.” Under the agreement, for $ 300 million, McDonald's will become the sole owner of Dynamic Yield, whose offices are located in New York and Tel Aviv. This is the biggest deal for McDonald's over the past twenty years.

The technology startup will continue to operate as a separate company. McDonald's will continue to invest in the development of its technology, which is already used by companies such as Urban Outfitters Inc., Ikea and HelloFresh

In 2018, McDonald's tested Dynamic Yield technology in its restaurants in the United States. After closing the deal, the company plans to more actively implement it - in particular for use in street screens with a menu for customers on cars.

Why McDonald's is investing in technology.

The new technology will allow McDonald's to change the menu displayed on the screens depending on many factors, including the weather. For example, on cold days, the system will display more varieties of coffee and other hot beverages, and in the heat it will produce ice cream. In addition, such an automated menu will offer customers additional products.

After joining the position of CEO in 2015, Steve Eastbrook (Steve Easterbrook) headed for the introduction of new technologies. Over the past few years, self-service kiosks, digital menus, and even delivery services have appeared in network establishments.

All this helps McDonald's to attract customers and stand out from the competition. At the same time, the company rarely makes acquisitions, but the purchase of Dynamic Yield in the future will provide a competitive advantage in the market.

Eastbrook said in a commentary for Forbes that “technology is a critical element for growth,” so their role in McDonald’s business will become increasingly important. The main goal of the network is to increase the level of personalization when going to its establishments.

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