Despite the recent slowdown in China's spending power, McDonald's, the world's leading fast-food brand, has chosen to buck the trend and expand its presence in China during this period. According to foreign media reports, McDonald's plans to increase the number of its global branches to 50,000 by 2027, up from the existing 410,000 units have grown significantly, which will be the fastest expansion progress in McDonald's history. Especially in the Chinese market, McDonald's expansion plans are particularly ambitious.
McDonald's last month acquired about 28 percent of The Carlyle Group's 2017 stake in China, bringing its combined stake in Hong Kong and Macau to 48 percent, or about $6 billion. Kantar, an international market research institution, pointed out that McDonald's cooperation with CITIC Group (CITIC) is one of its advantages, because CITIC Group has a good relationship with China, which may be an important factor for McDonald's to expand smoothly in the Chinese market.
McDonald's chief financial officer Ian Borden said the company plans to open 900 new stores in the United States by 2027, and plans to add 1,900 stores in the international market, including 1,000 new stores per year in the Chinese market. The plan also includes redesigning marketing strategies, revamping core menu offerings, and enhancing digital channels such as delivery services, mobile apps, and self-ordering machines.
The plan to expand stores is part of McDonald's "5-year growth plan" and is expected to increase the company's sales from directly operated and franchised stores by 2% this year and by 2% annually beyond 20245%。At this growth rate, McDonald's overall sales this year can reach $130 billion, of which the U.S. market alone exceeds $50 billion. McDonald's also hopes to have 2 active users of its "customer loyalty program" by 2027500 million, up from the current 1500 million, and it is expected that the overall sales from this part of the user will reach $25 billion, up from the current $20 billion.
McDonald's bold expansion plan in the Chinese market not only demonstrates its confidence in the Chinese market, but also reflects part of its global strategic adjustment. Against the backdrop of slowing global economic growth, the huge potential and consumer demand of the Chinese market still attracts international brands. This action by McDonald's may become a reference model for other international brands in the Chinese market, especially in the current complex and volatile global chain and market environment.
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