On Monday morning, McDonald’s Corporation announced the formation of a partnership with CITIC Limited, CITIC Capital Holdings and The Carlyle Group, which will act as the master franchisee for McDonald’s in mainland China and Hong Kong. The acquisition is up to $2.08 billion. Once the transaction is complete, CITIC and CITIC Capital will have a 52 percent controlling stake, with Carlyle having interest of 28 percent and McDonald’s having interest of 20 percent.
According to QSR Magazine, the new partnership will lead to a focus on key areas like menu innovation and retail digital leadership. There are also plans for an addition of over 1,500 restaurants over the next five years in Hong Kong and China.
"China and Hong Kong represent an enormous growth opportunity for McDonald's,” says McDonald's CEO Steve Easterbrook. “This new partnership will combine one of the world's most powerful brands and our unparalleled quality standards with partners who have an unmatched understanding of the local markets and bring enhanced capabilities and new partnerships, all with a proven record of success. By working together, we will unlock even faster growth and be closer to the customers and communities we serve as McDonald's works to be the leading quick service restaurant across the Chinese mainland and Hong Kong."