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McDonald's is considering selling part of its digital start-up Dynamic Yield, which it bought for over $300 two years ago to boost drive-through and in-restaurant kiosk orders.
According to McDonald's franchise owners, the investment in Dynnamic Yield hasn't paid off.
Consequently, McDonald’s would return $6 million to a franchisee-backed advertising fund for running the Israel-based Dynamic Yield.
The fast-food giant had been looking to utilize artificial intelligence to personalize its digital promotions to consumers, which would vary depending on weather, time of day, and wait times.
According to Dynamic Yield's founder and CEO Liad Agmon, a partial sale of the company had been discussed from the outset, and exploring the possibility seems to be ripe.
McDonald's purchase of Dynamic Yield in 2019 was the US-based group's largest purchase in years.
Dynamic Yield, which is seen as a key element of McDonald's digital strategy, operates independently within McDonald’s and has continued to pursue and work with clients other than its owner.
According to Dynamic Yield, it works with over 350 brands and helps create “individualized experiences" for over 600 million users each month.” Among Dynamic Yield's clients are Ikea, Hallmark, Urban Outfitters, and Sephora.bus
