is expanding its ownership stake in its Chinese operations, the company said Monday, as it looks to keep growing in the world’s second-largest economy.
The fast-food company is buying out minority shareholder
boosting its stake in its Chinese business to 48% from 20%.
Carlyle acquired its stake in McDonald’s (ticker: MCD) in 2017, when the company sold its operations in mainland China and Hong Kong to a locally led consortium for $2.1 billion. CITIC Capital, an investment management company, owned 52% of the Chinese business, and will continue to do so after the deal closes.
China is now McDonald’s second-largest market, the company said. It has doubled its restaurants to more than 5,550 since 2017, the company said. Sales in China have grown by more than 30% year to date since September 2019.
McDonald’s aims to open 10,000 stores in China by 2028.
“We believe there is no better time to simplify our structure, given the tremendous opportunity to capture increased demand and further benefit from our fastest-growing market’s long-term potential,” said McDonald’s CEO Chris Kempczinski.
The deal is expected to close in the first quarter of 2024, subject to regulatory approvals.
McDonald’s stock rose 0.3% to $276.55 in early trading. The S&P 500 was 0.2% lower.
Write to Sabrina Escobar at [email protected]