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

Insider's Ultimate China Travel Guide 2024 (Guangzhou)

Everything you need to know is right HERE!

Who Won What at That's Food and Drink Awards Beijing

The moment we've all been waiting for has arrived!

The 18th Festival Croisements Kicks Off in South China

Over 400 captivating events are scheduled to take place across 31 cities nationwide.

WIN! Countdown to 2023 That's Food & Drink Awards (Beijing)

The 21st edition of the 2023 That's Food and Drink Awards (Beijing) will take place on April 1 at Modernista.

See 4 of China's Best Young Classical Musicians Live!

Performing for one night only in Shanghai.

China Bans Food Imports from Japan Over Nuclear Water Release

Accumulated water from the devastated Fukushima nuclear facility is set to be discharged into the ocean.

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