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Why McDonald's turns its drive menu into an Amazon Alexa-like device



<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "McDonald & # 39; s ( MCD ) is Mc-mastered the integration of artificial intelligence into its all-important drive-thru. "Data-reactid =" 15 "> McDonald's (MCD) is Mc-mastered the integration of artificial intelligence into its all important drive-thru.

And investors should welcome the technical infusion.

<p class = "canvas -atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Within the last six months, Golden Arches & nbsp; intercepted two tech startups & nbsp; that will help turn McDonald's menu card into a giant Amazon Alexa-like device. McDonald's said Tuesday it joined on acquiring an early step-based technology company Apprente. for a machine, rather than a human, when ordering at a McDonald's drive-thru. "data-reactid =" 17 "> Within the last six months, Golden Arches listed two tech startups that effectively help turn McDonald's menu board into a giant Amazon Alexa-like device. McDonald's said Tuesday that it agreed to acquire the early technology company Apprente. The technology launch means that consumers will eventually talk to a machine rather than a human when ordering at a McDonald's drive-thru.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) –sm Mt (0.8em) – sm" type = "text" content = "I & nbsp; at the end of March McDonald & # 39; s acquired Dynamic Yield the technology creates proposed items for the unit through the menu based on time of day, weather, current restaurant traffic and trend orders. McDonald's plans to have the technology up and running on all 14 000 plus US locations and Australia at year-end. "Data-reactid =" 18 "> At the end of March, McDonald's acquired Dynamic Yield. The technology creates proposed items for the menu unit via unit based on time of day, weather, current restaurant traffic and trend orders. McDonald's plans to have the technology up and running at all 14,000 plus US locations and Australia by the end of the year.

Technical acquisitions are very logical, say the Yahoo Finance professionals have talked up.

McDonald's drive-thru represents a 70% of its total business. It is becoming an increasingly important sales driver as all the hurried people disgust themselves from their cars to get food. So, the driving force through the ordering process must be in place, otherwise McDonald's risks returning to its dark days with weak store traffic.

"It makes sense, it should help reduce bottlenecks at the point of order," veteran restaurant analyst Peter Saleh of BTIG tells Yahoo Finance with reference to the Apprente acquisition. Saleh says it should strengthen consumers' perceptions of McDonald's dining experience. And with this, the potential will drive increased visits to the restaurant giant.

At the same time, Dynamic Yield technology should help raise the average amount that each consumer buys per visit, Saleh believes.

Staying ahead of the competitors [19659008] Above all, McDonald's direct acquisition of these technical clothes gives it a competitive advantage over others in the fast food space. McDonald's does not actually own advanced technology now that its competitors are forcing them to either develop it themselves or find other levels of acquisitions – both costly and risky.

Saleh says McDonald's strong financial position means they can pull the trigger on these technology purchases.

A patron looks at the menu at McDonald's in Williamsville, NY (AP Photo / David Duprey)

Even without the driving technical infusion, McDonald's showed progress this year on speeding up its often jam-packed drive-through. The company has reduced the number of items on the menu and trained workers in an attempt to get the average running time through 30 seconds. It's unclear if McDonald's has hit the magic time yet, but it's moving in that direction.

"We see that driving times are losing almost all of our major international markets, and especially here in the United States as well," McDonald's CEO Steve Easterbrook told analysts on the second quarter earnings call.

Technology will help the rest.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Brian Sozzi is an editor -big-great and co-host of The First Trade at Yahoo Finance. Follow him on Twitter @BrianSozzi " data-reactid = "40"> Brian Sozzi is the editor and co-host of [19659047] The First Trade at Yahoo Finance. Follow him on Twitter @BrianSozzi

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