McDonald’s Ignites China Growth

The fast-food chain will nearly double its locations in China within five years.

August 09, 2017

SHANGHAI – McDonald’s will increase its locations in China close to twofold within five years, Reuters reports. The fast-food chain announced the expansion this week.

Earlier this year, McDonald’s sold nearly all of its Hong Kong and China business to CITIC Ltd and Carlyle Group for around $2.1 billion. The new venture originally expected to add 1,500 restaurants in mainland China and Hong Kong by 2022.

Now, McDonald’s said the number of mainland China stores would grow by 500 stores annually to reach 4,500 by 2022—up sharply from 2,500 currently. The company also maintained that yearly sales in China should be in the double digits over that same period.

“China will soon become our largest market outside of the United States. We are excited to join forces with CITIC and Carlyle for better localized decision-making to meet changing customer demands in this dynamic market,” said CEO Steve Easterbrook.

CITIC now has 52% and has Carlyle 28% of the burger chain’s China and Hong Kong business. McDonald’s plans on opening more locations in smaller Chinese cities as well as increasing delivery options. In addition, it would launch a “digitalized and personalized” dining experience.

In the United States, McDonald’s has reversed sagging sales with fresh burgers and $1 drink specials.

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