McDonald's Considers Partial Sale of Digital Startup Dynamic Yield -- Update
February 26 2021 - 9:36PM
Dow Jones News
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.
Dynamic Yield couldn't be reached for comment.
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 21:21 ET (02:21 GMT)
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