The burger giant will own 48 percent of McDonald’s China after agreeing to acquire a stake owned by Carlyle.
The burger giant announced on November 20 it has agreed to acquire the stake in its China operator currently owned by Carlyle. Terms of the deal were not disclosed.
When the deal is finalised in 2024, McDonald’s will own 48 percent of McDonald’s China. CITIC Consortium, a state-owned conglomerate, will continue to own 52 percent of the partnership.
Chris Kempczinski, McDonald’s President and CEO, called the partnership “extremely successful in growing McDonald’s presence in the region.” The number of restaurants McDonald’s operates in the country has doubled since 2017 to more than 5,500 locations.
The company’s goal is to grow the number of locations to more than 10,000 by 2028. McDonald’s, among other fast-food chains, is intent on growing rapidly in China, the world’s second-largest economy. The company sold its operations in China to a partnership between CITIC and Carlyle for just over $2 billion in 2017. McDonald’s at the time retained 20 percent ownership in the company.
The deal with Carlyle is expected to close in the first quarter of next year and is subject to regulatory approvals.
Fun Fact: Does the McDonald’s CEO eat at McDonald’s?
Yes – so how does the 54-year-old remain trim? By running at least 80km a week and ordering his fish sandwiches without tartare sauce and his Egg McMuffins with no bacon.