Mastercard to acquire AI startup from McDonald's

McDonald’s agreed to sell Dynamic Yield, an artificial intelligence startup acquired under its former CEO in 2019 for more than $300 million, to Mastercard.

The acquisition would give Mastercard technology used to personalize menus and browsing options online and at physical stores. McDonald’s, which will remain a customer, has used Dynamic Yield in drive-thru menus and ordering kiosks. Mastercard has other customers who use Dynamic Yield, the companies said in a statement. 

Daniel Acker/Bloomberg

Former McDonald’s Chief Executive Steve Easterbrook had raised eyebrows with the acquisition, the company’s largest in decades, because the New York-based startup’s business was far afield from selling burgers and milkshakes. Franchisees sometimes resisted his push to spend on new technology, though his drive to develop mobile ordering and delivery services paid off when the COVID-19 pandemic hit. By then, Easterbrook had been fired after the company discovered he had been in sexual relationships with subordinates.

The transaction will close in the first half of 2022, the companies said. The price was not disclosed. Dynamic Yield CEO Liad Agmon will step aside and become an advisor, with Chief Technology Officer Ori Bauer replacing him.

Shares of Chicago-based McDonald’s rose 1% at 9:42 a.m. in New York.