McDonald’s sells most of its business in China
Another 1,500 McDonald's are set to open across the Chinese mainland and Hong Kong in five years under the largest franchise deal outside the US between the fast-food giant and a consortium led by CITIC and Carlyle Group.
McDonald’s announced on Monday that the Beijingbased conglomerate had won the franchise bid to run its China operations for the next 20 years.
The $2.08 billion deal will give state-owned CITIC and CITIC Capital a controlling stake of 52 percent in the new entity, with US buyout firm Carlyle holding 28 percent and McDonald’s 20 percent of shares, according to McDonald's CEO in China, Phyllis Cheung.
With this transaction, McDonald is re-franchising all of its 2,600-plus stores in the Chinese mainland and Hong Kong, a major step toward turning around its fortunes in Asia and cutting costs globally.