McDonald’s Corp. has agreed to sell Dynamic Yield, an artificial intelligence business bought for more than $300 million by its former CEO in 2019, to MasterCard Inc. for an unknown sum. McDonald’s had already complained in the past that Dynamic Yield didn’t offer the sales gain they expected and that its technology failed to meet expectations, so this split isn’t surprising.
The agreement offers MasterCard access to technologies that customize menus and browsing choices online and in-shop. Chicago-based McDonald’s had incorporated Dynamic Yield in the drive-thru menus and ordering kiosks. According to a statement, MasterCard has additional clients who use Dynamic Yield.
The service was purchased by the burger conglomerate less than three years ago. It is also McDonald’s second such sale in a few months, with the company indicating that it won’t keep the technology business it buys for long. IBM recently acquired McDonald’s automated ordering lab.
According to the fast-food company, Dynamic Yield’s sales increased during McDonald’s ownership. According to the company, McDonald’s digital engagement services will strengthen due to the service’s sale to MasterCard.
McDonald’s claims that both Dynamic Yield and MasterCard services, such as loyalty, analytics, and marketing, are used by various merchants and financial service businesses. As a result, selling Dynamic Yield to the payment firm makes sense.
“There are certain times when it may make sense for us to go acquire a technology so that we can accelerate the development of that, make sure that it is bespoke to McDonald’s needs,” McDonald’s CEO Chris Kempczinski said during the company’s Q3 2021 earnings call.
According to the firms, the deal is expected to be finalized in the first half of 2022. Liad Agmon, the CEO of Dynamic Yield, will step down and become an adviser, with Chief Technology Officer Ori Bauer taking his place.