McDonald’s to Sell Digital Startup Dynamic Yield to Mastercard

The world’s largest burger chain said Tuesday the deal would allow Dynamic Yield to further scale its capabilities and grow its third-party business. McDonald’s said it would continue to work with Dynamic Yield and Mastercard to bring the technology to additional markets. McDonald’s has worked with Mastercard on several of the fast food chain’s digital initiatives, it said.

“With Dynamic Yield’s expertise and our scale and relationships, we’ll be able to bring the connections between the end consumer and our customers to new heights,” Mastercard President of Data and Services

Raj Seshadri

said in an emailed statement.

The companies declined to disclose the terms of the transaction. The deal is expected to close in the first six months of next year.

McDonald’s acquired Dynamic Yield in March 2019 for more than $300 million, which was then its largest acquisition in decades. Executives have called it a central part of the burger chain’s evolving digital strategy as it and other fast-food chains focus more on digital sales through outdoor menu boards and apps following customers’ increasing preference to have food delivered or ordered with less human interaction.

McDonald’s installed the Dynamic Yield suggestive-selling technology across thousands of drive-throughs and kiosks in the U.S., U.K., Australia and Canada, with the technology suggesting additional menu items for customers to buy upon placing their order.

McDonald’s U.S. sales have grown during the pandemic, but franchisees have questioned the system’s performance in the past year. McDonald has said that a review of transactions found that Dynamic Yield’s technology had contributed to sales less than originally reported.

—Heather Haddon contributed to this article.

Write to Kimberly Chin at kimberly.chin@wsj.com