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McDonalds Corp NYSE:MCD NYSE Common Stock
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McDonald's Considers Partial Sale of Digital Startup Dynamic Yield -- 2nd Update

27/02/2021 2:47am

Dow Jones News


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By Heather Haddon and Suzanne Vranica 

McDonald's Corp. said it is considering selling part of digital startup Dynamic Yield Ltd., which it acquired less than two years ago in a bid to boost sales at drive-throughs and digital kiosks.

Dynamic Yield, which helps retailers provide personalized digital promotions to consumers using streams of customer data, has operated as a stand-alone company within the chain. For McDonald's, it provides personalized offers for customers of its stores. It also works with other retailers to boost online sales.

Liad Agmon, founder and CEO of Dynamic Yield, said in a statement Friday that the potential partial sale "has been discussed from the outset and now feels like the right time to explore that possibility."

McDonald's in 2019 paid more than $300 million for Dynamic Yield, which was then its largest acquisition in decades. Executives have called it a central part of the burger chain's evolving digital strategy.

McDonald's said it was exploring a sale of the portion of the Israeli-based technology firm that works with other retailers, a growing part of its business.

McDonald's intends to keep the part of the firm that services the burger company, including its thousands of drive-throughs, it said, adding that it was confident in the technology and was continuing to invest in it. McDonald's said there is no set timetable for a partial sale. It is also possible that no deal will happen.

McDonald's installed the Dynamic Yield system across thousands of drive-throughs in the U.S., Australia and Canada, with the technology suggesting additional menu items for customers to buy upon placing their order. The chain has also started incorporating it in kiosks in Australia.

McDonald's is scrutinizing its technology platform as it and other fast-food chains focus more on digital sales through outdoor menu boards and apps. The pandemic has made online ordering and other digital strategies more important as fewer customers eat and order inside restaurants.

McDonald's U.S. sales have grown during the pandemic, but chain executives have said it needs to keep investing in technology to satisfy customers who want their food delivered or ordered with little human interaction.

Write to Heather Haddon at heather.haddon@wsj.com and Suzanne Vranica at suzanne.vranica@wsj.com

 

(END) Dow Jones Newswires

February 26, 2021 21:32 ET (02:32 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

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