McDonald's To Expand China Presence With 1,000 New Outlets This Year, Says 'Much On Track' For 10,000 Mainland Restaurants By 2028
Portfolio Pulse from Benzinga Neuro
McDonald's Corp (NYSE:MCD) plans to open 1,000 new outlets in China this year as part of its strategy to expand in lower-tier cities and aims for 10,000 restaurants in mainland China by 2028. This expansion is in response to market saturation in major cities and economic challenges in China. Despite international challenges, McDonald's reported a 4.3% rise in U.S. same-store sales and 3.4% worldwide in Q4. However, McDonald's shares fell 3.73% following the announcement.
February 06, 2024 | 4:11 am
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McDonald's Corp is expanding its presence in China with 1,000 new outlets in 2023, aiming for 10,000 by 2028. Despite a 4.3% rise in U.S. same-store sales and 3.4% worldwide in Q4, shares fell 3.73%.
McDonald's expansion in China indicates a strategic move to capture more market share in lower-tier cities, reflecting long-term growth potential. However, the short-term impact on the stock price was negative, as shares fell 3.73% following the announcement. This drop could be attributed to concerns over the costs and challenges of rapid expansion, especially in a market facing economic uncertainties. The mixed Q4 results, with strong sales growth but impacted by international tensions, also contribute to the neutral short-term outlook.
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