McDonald’s will sell Dynamic Yield, a digital business, to Mastercard

McDonald’s Corp. announced that it will sell to Mastercard Inc. a digital company it purchased nearly three years ago in an effort to enhance sales at drive-throughs and digital kiosks.

Since its acquisition, Dynamic Yield Ltd., which helps retailers give targeted digital promotions to customers utilising streams of customer data, has operated as a separate entity within the network. McDonald’s caters to the needs of its consumers with unique offers. It also collaborates with other businesses in order to increase online sales.

The purchase will allow Dynamic Yield to extend its capabilities and grow its third-party business, according to the world’s largest burger brand. McDonald’s stated it would keep working with Dynamic Yield and Mastercard to expand the technology’s reach. McDonald’s has collaborated with Mastercard on a number of digital initiatives, according to the company.

“We’ll be able to elevate the connections between the end consumer and our customers to new heights with Dynamic Yield’s experience, size, and partnerships,” Mastercard President of Data and Services Raj Seshadri said in an emailed statement.

The terms of the deal were not disclosed by the companies. The transaction is scheduled to be completed in the first half of next year.

McDonald’s paid more than $300 million for Dynamic Yield in March 2019, making it the company’s largest acquisition in decades. It’s a key component of the burger chain’s changing digital strategy, according to executives, as it and other fast-food restaurants focus increasingly on digital sales via outdoor menu boards and apps in response to customers’ growing demand for meals delivered or ordered with minimal human interaction.

In the United States, the United Kingdom, Australia, and Canada, McDonald’s deployed Dynamic Yield suggestive-selling technology in hundreds of drive-throughs and kiosks, with the technology suggesting additional menu items for consumers to buy while placing their order.

Although McDonald’s sales in the United States have increased throughout the pandemic, franchisees have expressed concerns about the system’s performance during the last year. According to McDonald, a study of transactions revealed that Dynamic Yield’s technology contributed to sales at a lower rate than previously disclosed.