McDonald's Selling Off China Business

By Bridget O'Donnell, January 10, 2017

1 0

McDonald's will sell off most of its business in the Chinese mainland and Hong Kong, in a deal that is worth up to US$2.1 billion. 

Citic, a state-owned financial firm, will take a 52 percent majority stake in Mickey D's Chinese operations. The Carlyle Group, a US private equity firm, will also take a 28 percent stake in the investment. Meanwhile, McDonald's will continue to hold the remaining 20 percent of the business. The announcement was made yesterday.

According to the New York Times, the turnaround plan "involved making 95 percent of its restaurants franchises, including more than 1,750 in China and Hong Kong." 

Big changes at the golden arches have already been underway for the last few years, with American branches offering more gourmet menu items, higher quality ingredients, touch screens and more.

Similar changes have already made their way across the Pacific, as the company's China operations have started favoring fancy chefs and hi-tech gimmicks over Ronald McDonald. 

Take these recently launched "Michelin Star" burgers, for example:

McDonald's Michelin Star Burgers

Or these "Create Your Taste" burger machines:

Create Your Taste Burger Machine

Create Your Taste McDonald's

The partners announced that they plan on opening another 1,500 restaurants in Greater China over the next five years, with the goal of bringing more outlets to smaller Chinese cities. 

McDonald’s currently runs over 2,400 restaurants on the mainland and 240 in Hong Kong.

The announcement comes just two months after KFC parent company Yum Brands announced a spinoff of its Chinese division.

[Top image via University of Missouri]

more news

Sherpa's Acquired by Fast Food Giant Yum China

The popular expat-friendly delivery service was acquired by the operator of KFC and Pizza Hut in China.

China's Ultra-Fast New Bullet Trains Now Run Between Beijing and Tianjin

Starting today the new Fuxing trains are operating multiple routes from the capital to Tianjin and Hebei.

Multiple Food Scandals Rock South China

From moldy raisins and candied winter melon to toxic pig blood, this month's already seen its fair share of food scandals.

China's Year in Food Scandals 2016

A look at some of the most sickening food scandals in China in 2016.

Wal-Mart to Invest USD25 Million in Food Safety Research in China

Finally, there is good news in the world of China's food safety.

Fork Made of Fries in Wacky McDonald's China Gimmick

If this looks like the semi-edible fork of your dreams, be warned: only 100 'Frorks' are being given away in China.

This Month in History: KFC Opens First Restaurant in China

On November 12, 1987, KFC made its debut in China near Qianmen in Beijing.

No, Taco Bell Isn't Opening 1,000 China Stores... Yet

Taco Bell isn't opening 1,000 new restaurants in China... at least not for the time being.

0 User Comments

In Case You Missed It…

We're on WeChat!

Scan our QR Code at right or follow us at thatsonline for events, guides, giveaways and much more!

7 Days in China With

Weekly updates to your email inbox every Wednesday


Download previous issues

Never miss an issue of That's Magazines!

Visit the archives

Get the App. Your essential China city companion.