McDonald's Corporation MCD announced a multi-year extension of its partnership with Cognizant Technology Solutions Corporation CTSH, laid upon the foundation curated in 2017.

This revolutionary partnership between the two companies underscores their dedication to technological excellence and innovative solutions, ensuring better customer success in the restaurant industry.

MCD stock inched up 0.6% during Tuesday’s trading session.

More on McDonald's Renewed Partnership

Per the renewed agreement, Cognizant will continue to support McDonald's in various important enterprise areas, including Global Finance Systems and Human Capital Management. These aspects encompass payroll processing, franchisee management, master data management and legal applications.

Cognizant will be bringing its product expertise, digital engineering and unique quality assurance services, along with innovations in Cloud, Enterprise AI and Generative AI, to the table. By leveraging the leading-edge technology and innovative offerings, the primary focus will be to enhance McDonald's’ staff enablement, customer experience and operational efficiency.

Per JT Scott, vice president of Global Technology Enterprise Products & Platforms at McDonald's, “Cognizant has been an invaluable partner in helping us streamline our enterprise applications across major markets and further our journey to the cloud. The next several years will undoubtedly bring exciting advancements as we continue working together to embrace new technologies and innovation.”

Extensive Array of Strategic Initiatives Boost MCD’s Growth

McDonald’s has a presence in more than 100 countries, which underscores its strategic efforts including sustained product innovation, geographic expansion, loyalty program and digital initiatives. The company continues to excel in delivering a superior customer experience with notable operational improvements, improved service times and increased customer satisfaction across most major markets.

Furthermore, its continuous efforts to improve its performance in International Operated Markets, including Australia, Canada, France, Germany and the United Kingdom, intend to drive comps growth in these markets through the introduction of value meals, customization of the menu to local customer tastes, reimaging of restaurants, efficient marketing and promotions, improved service and increased convenience via delivery and digitalized presence.

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Shares of MCD have gained 11.3% in the past six months compared with the Zacks Retail - Restaurants industry’s 13.2% growth. Headwinds in the form of macroeconomic challenges, coupled with elevated commodity and wage costs, are marring prospects. However, the company expects the initiatives mentioned above to drive growth in the upcoming periods. It expects to open 50,000 restaurants by 2027.

MCD’s Zacks Rank & Key Picks

McDonald’s currently carries a Zacks Rank #4 (Sell).

Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.

Potbelly Corporation PBPB currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PBPB has a trailing four-quarter earnings surprise of 67.5%, on average. The stock has gained 41% in the past six months. The Zacks Consensus Estimate for PBPB’s 2025 sales and earnings per share (EPS) indicates growth of 4.3% and 12.5%, respectively, from the year-ago period’s levels.

Deckers Outdoor Corporation DECK currently sports a Zacks Rank of 1. DECK has a trailing four-quarter earnings surprise of 41.1%, on average. The stock has gained 45.6% in the past six months.

The Zacks Consensus Estimate for DECK’s fiscal 2025 sales and EPS indicates a rise of 14.1% and 14.4%, respectively, from the year-ago period’s levels.

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Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report

McDonald's Corporation (MCD) : Free Stock Analysis Report

Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report

Potbelly Corporation (PBPB) : Free Stock Analysis Report

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