McDonald's Buys Israeli Tech Company for $300 Million

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A trip to McDonald's will soon become more personalized.

McDonald's will pay more than $300 million, a person familiar with the matter said. He mentioned further that this acquisition would provide Mac Donald's customers more convenience on their own terms. The tech provider will allow McDonald's to offer personalized items on its digital drive-thru menu boards. This is the largest acquisition of the fast-food company and showcases the company's desires to use technology for speed growth in the ever-competitive restaurant industry, as per the daily.

Do big data and fast food go together? However, that's about to change as McDonald's Corporation (MCD) acquires AI-powered platform Dynamic Yield in an agreement that's being touted its biggest in decades.

With the agreement, McDonald's becomes the sole owner of Dynamic Yield, which is based in NY and Tel Aviv. Dynamic Yield previously raised $83 million from investors including Naver Corporation and Bessemer Venture Partners.

"Technology is a critical element of our velocity growth plan", Easterbrook said in a statement.

The A.I. has already been tested a year ago at a number of McDonald's restaurants and it looks like the system worked well enough, considering the company wants now to extend to all of its 14,000 restaurants in the U.S. It said it tested the technology in several USA restaurants in 2018 and would roll it out in drive-thrus in the United States in 2019, expanding to top worldwide markets after that. Plus McDonald's will also begin work to integrate the technology into all of its digital customer experience touchpoints like self-order kiosks and the McDonald's Global Mobile App.

The digital signage will also display additional and live suggestions to add to a customer's order based on their current selection- the same tactic used by plenty of e-commerce sites to encourage buyers to make additional purchases. R.J. Hottovy, consumer strategist with Morningstar, said McDonald's has been pretty successful in recent years for simplifying its operations.

McDonald's executives already have said that they will focus on curbing those drive-thru wait times.

The plan is to start rolling this out across the USA in 2019 and then to gradually move into global markets. And Dynamic Yield will continue to serve their current clients and plans to attract future customers.