McDonald’s has announced an $US8.5 billion overhaul of its restaurants, including revamping its menu to cater to modern dieting and food trends.

New menu items in the US and other markets would include grilled chicken sandwiches and wraps, and the fast-food chain would experiment with products like egg bites and bowls.

The food overhaul is about meeting the needs of customers who were on weight-loss drugs like Ozempic or seeking more protein and varied portion sizes.

Skye Anderson, the president of McDonald’s USA, said 30 million Americans were now using GLP-1 weight loss drugs, and wanted smaller, more protein-packed meals as a result.

And 60 million Americans were actively seeking more protein in their diet, he said.

“This is an opportunity. We need to keep giving them more reasons to make McDonald’s their first choice,” Anderson said.

McDonald’s says it will modernise its restaurants globally over the next decade.

Fast-food traffic in many markets, including the US, is flat, so for McDonald’s to continue to grow it had to grab share from competitors and improve restaurant productivity, CEO Chris Kempczinski said at a meeting with investors at the company’s Chicago headquarters.

McDonald’s wants to automate more tasks, like inventory and scheduling, and improve kitchen operations.

“The winners will be the companies that create more demand and deliver it more efficiently,” Kempczinski said.

On the product side, McDonald’s said hand-breaded chicken, which has rolled out at 10,000 restaurants in Asia and a handful of restaurants near Chicago, has boosted sales and quality ratings. The company plans to expand its testing to more markets in the US and Ireland next year.

McDonald’s said the restaurant modernisations include lockers to handle delivery orders, more visible coffee preparation areas to enhance quality perceptions, bigger play areas and improved kitchen layouts.

Scales to help ensure order accuracy — which are already in use at 10,000 restaurants globally — will be in 20,000 restaurants by 2028, McDonald’s said.

The company is deploying its ArchIQ system, developed with Google, that improves order accuracy with artificial intelligence and automates tasks like inventory management and scheduling.

Archy could eventually reduce at least 50 labour hours per week in a typical McDonald’s, Chief Financial Officer Ian Borden said, adding the intention was not to reduce staffing.

Kempczinski said customers have responded positively to Archy in testing because it helps make their orders more accurate.

“It’s not AI is bad or AI is good. We try to be really thoughtful about how we use it,” he said.

McDonald’s is also rolling out new employee training that will focus on hospitality and food quality, said Tiffanie Boyd, McDonald’s chief people officer.

At the same time, McDonald’s is still focused on value. Kempczinski said low income consumers, defined as US households making $US45,000 or less, continue to go out for fast food but not as often as they used to.

“This is the environment that we’re in right now. You have to be on your game and deliver that value,” he said. “The pressure around cost of living isn’t going away.”

-with AAP