McDonald’s Considers Partial Sale of Digital Startup Dynamic Yield

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 [email protected] and Suzanne Vranica at [email protected]