McDonald’s Sells Personalization Partner Dynamic Yield To Mastercard

After acquiring it only three years ago, McDonald's is selling personalization and decision logic technology company Dynamic Yield to Mastercard for an undisclosed sum. The fast-food giant had purchased Dynamic in 2019, in a transaction valued at over $300 million, to help add personalization features to its drive-thru experience. The acquisition put Dynamic in rarified air: McDonald's, which seldom purchases other companies, marked the deal as its biggest in roughly two decades.

Dynamic's technology has to date been leveraged for McDonald's ordering kiosks and drive-thrus in multiple markets globally. Although pandemic-era business has been booming, McDonald’s said a review of transactions discovered that Dynamic tech had pumped up sales less than originally reported.

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Now, Dynamic will work with Mastercard to scale its tech to additional third-party businesses. McDonald's and Dynamic will not exactly be parting ways, either, as the golden-arched chain indicated it will further collaborate with Mastercard and its newest acquisition to continue scaling tech at various restaurant locations. Prior to this, McDonald's had teamed up with Mastercard for several of its digital initiatives.

The transaction is expected to close within the first six months of 2021. As publicity concerning the deal circulated, Mastercard's stock rose almost 2% and McDonald's shares were up less than 1%.