Why McDonald's is building an advertising business

Key Points:

• McDonald's announced plans to create its own media network, following the example of retailers like Amazon and Walmart, aiming to generate a new revenue stream through advertising on its digital drive-thru order boards.
• The pilot program began in August at 450 company-owned U.S. restaurants and has not yet expanded to franchise-operated locations, but McDonald's envisions the media network growing into a $1 billion business.
• McDonald's global chief marketing officer highlighted the rapid growth of commerce media, expected to exceed $100 billion in the U.S. by 2028, and emphasized the opportunity to generate revenue with minimal operational impact.
• The initiative could provide McDonald's with high-margin revenue to offset rising costs and support planned investments in restaurant upgrades, leveraging the brand's extensive reach to 85% of the U.S. population and 14,000 locations.
• Retailers Amazon and Walmart have successfully developed their own media networks, with Amazon generating $68.6 billion in advertising sales in 2025 and Walmart's ad business growing 43% recently, demonstrating the potential profitability of such ventures.