McDonald’s Corporation (MCD) is the leading global foodservice retailer with nearly 37,000 locations in over 100 countries. The Corporation operates and franchises McDonald’s restaurants in the US and across the globe with over 90% of its restaurants owned and operated by local, independent businessmen and women.
As per reports, state-owned Citic Ltd, a Chinese conglomerate is looking to reduce its stake in McDonald’s for China after rising costs and pinching profits. Citic is considering buyers for a 22% stake, which would bring down its share by 10% in China Operations. The base price for the stake is set at 2.17 billion yuan ($312 million). Citic Capital Holdings Ltd. partly owned by Citic Ltd owns 20% in McDonald’s China is interested in buying the stake, as per reports.
“Citic Capital is confident with the future growth and prospects of the business and we’re actively participating in the bidding process,” stated a Hong Kong-based spokeswoman.
The sale comes after the fast-food chain witnessed dropping revenue and profit amid strong competition in China’s dining scene. Costs have also risen due to the ongoing African Swine Fever epidemic wiping off a quarter of the world’s pigs and caused animal protein prices in China to surge.
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