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McDonald’s

McDonald’s acquisition will improve supply chain
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Fast food giant McDonald’s is acquiring Dynamic Yield in $300m deal that has big implications for its supply chain set up.

McDonald’s says it will utilise Dynamic Yield’s technology to provide an even more personalised customer experience, icluding varying outdoor digital Drive Thru menu displays to show food based on time of day, weather, current restaurant traffic and trending menu items.

The decision technology can also instantly suggest and display additional items to a customer’s order based on their current selections.

McDonald’s tested the technology in several U.S. restaurants in 2018 and will begin to roll the technology out in its Drive Thru at restaurants in the United States in 2019 and then expand the use to other top international markets. McDonald’s will also begin work to integrate the technology into all of its digital customer experience touchpoints, such as self-order kiosks and McDonald’s Global Mobile App.

McDonald’s says Dynamic Yield will help it meet customer needs around ever-changing trends and evolving marketing technologies, and allows for the continued advancement and elevation of the McDonald’s supply chain decision making.

“Technology is a critical element of our Velocity Growth Plan, enhancing the experience for our customers by providing greater convenience on their terms,” said Steve Easterbrook, President and Chief Executive Officer, McDonald’s Corporation. “With this acquisition, we’re expanding both our ability to increase the role technology and data will play in our future and the speed with which we’ll be able to implement our vision of creating more personalised experiences for our customers.”

Liad Agmon, co-founder and CEO of Dynamic Yield, added: “We started Dynamic Yield seven years ago with the premise that customer-centric brands must make personalization a core activity.  We’re thrilled to be joining an iconic global brand such as McDonald’s and are excited to innovate in ways that have a real impact on people’s daily lives.”

McDonald’s recent advancements in the tech space – including the development of McDonald’s Global Mobile App, Mobile Order and Pay, indoor and outdoor digital menu boards and self-order kiosks – have transformed customer experiences in and around its restaurants, by giving customers more ways to pay and personalize their orders to meet their needs.

Upon closing, McDonald’s says it will become sole owner and will continue to invest in Dynamic Yield’s core personalization product.

Dynamic Yield will remain a stand-alone company and employees will continue to operate out of offices around the world. Dynamic Yield will also continue to serve their current, and attract future, clients.

Investors pile sustainability pressure on fast food supply chains
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Global investors representing more than $6.5 trillion have called on six of the largest companies in the $570 billion global fast-food sector to act urgently on the climate and water risks in their supply chains.

The investors have sent letters to Domino’s Pizza, McDonald’s, Restaurant Brands International (owners of Burger King), Chipotle Mexican Grill, Wendy’s Co. and Yum! Brands (owners of KFC and Pizza Hut).

The letters, facilitated by the sustainability organisation Ceres and the FAIRR Initiative, ask companies to explain by March 2019 how they plan to enact meaningful policies and targets to de-risk their meat and dairy supply chains.

More than 80 investors have joined the letter, including BMO Global Asset Management (Canada), Aviva Investors (UK) and Aegon Asset Management (Netherlands).

The engagement is also supported by members of the Interfaith Center on Corporate Responsibility (ICCR) who have convened long-standing engagements with these companies on a host of environmental and social concerns – including deforestation and the water impacts of animal agriculture.

The letters call on the fast food companies to:

  • Adopt a supplier policy with clear requirements for suppliers of animal protein products to report and reduce greenhouse gas (GHG) emissions and freshwater impacts.
  • Publish quantitative, time-bound targets to reduce the GHG emissions and freshwater impacts of their own meat and dairy supply chains.
  • Commit to publicly disclose progress on these targets annually.
  • Undertake a climate scenario analysis in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Meanwhile, a new investor briefing from FAIRR highlights the environmental impact of the meat and dairy producers that supply the fast food sector. Agricultural emissions, including those from meat and dairy, are on track to contribute  around 70% of total allowable GHG emissions by 2050. This will create an 11-gigaton GHG mitigation gap between projected emissions and the target level required to keep global warming under a 2°C threshold. The livestock sector is also estimated to use approximately 10% of annual global water flows.

Jeremy Coller, Founder of FAIRR and Chief Investment Officer of Coller Capital said: “Every day around 84 million adults consume fast food in the US alone, but the inconvenient truth of convenience food is that the environmental impacts of the sector’s meat and dairy products have hit unsustainable levels. To put this in perspective, if cows were a country, it would be the world’s third largest emitter of greenhouse gases.

“Other high-emitting industries, such as cars or oil and gas, are beginning to set clear yet ambitious climate targets, making animal agriculture one of the world’s highest-emitting sectors without a low-carbon plan. A failure to tackle these major environmental problems in corporate supply chains puts the long-term financial sustainability of these household names under threat. Investors are calling for more strategic and innovative thinking to manage these risks.”

Mindy Lubber, president and CEO of Ceres, added: “Fast-food giants deliver speedy meals, but they have been super slow in responding to their out-sized environmental footprints. Investors are eager to see more leadership from these companies to reduce the mounting climate and water risks linked to their meat and dairy suppliers. From eliminating deforestation to reducing water waste, cleaning up their supply chains will have enormous impacts on the animal agriculture sector as a whole, and dramatically increase our ability to meet the goals of the Paris Agreement to limit global warming.”