McDonald’s, through its official Weibo account, confirmed on Wednesday [25 October 2017] evening that it has changed its Chinese company name from “Maidanglao” to “Jingongmen,” [金拱门] or “Golden Arches. “The fast food chain, however, clarified that it “only changed its registered name” but that all stores would continue their service under the familiar Chinese brand name “Maidanglao” (the Chinese pinyin translation of the English word McDonald)…Full Article: ECNS.cn Oct 2017
- In the wake of CITIC Group and Carlyle Group’s acquisition, McDonald’s China announced its “Vision 2022” plan to increase the number of its mainland restaurants from 2,500 to 4,500. Approximately 45% of the 4,500 restaurants would be situated in third to fourth-tier cities.
- In September 2017, McDonald’s China and China Overseas Land & Investment, aka COLI (HKG:0688) signed a property cooperation agreement in Shenzhen. As a result, McDonald’s will establish restaurants in commercial properties across 60 Chinese cities.
- In August 2017, USA’s Carlyle Group and its Chinese partner CITIC Group completed its purchase of McDonald’s franchises in mainland China and Hong Kong. The USD 2.08 billion deal will see CITIC Ltd. and CITIC Capital Partners control a joint 52% stake, while Carlyle Group will control 28%.
- In June 2017, the Chairman of CITIC Group stated that Dah Chong Hong Holdings, a subsidiary of CITIC Group, may become a supplier of McDonald’s in the future.
- In February 2017, Beijing-based Hejun Vanguard Group filed two complaints against McDonald’s China claiming that the CITIC/Carlyle Group deal would negatively impact 120,000 Chinese employees of the fast-food giant, and that McDonald’s itself failed to properly register all of its restaurants in China.
- In January 2017, McDonald’s announced it would sell 80% of Chinese operations (including Hong Kong). As a result of the US$2.08 billion deal, China’s CITIC will have a 52% stake while USA’s Carlyle Group will have a 28% stake. McDonald’s will retain a 20% stake.
- In December 2016, McDonald’s selected USA’s Carlyle Group and its Chinese partner CITIC Group to purchase its franchises in mainland China and Hong Kong for approximately US$2 billion. The bidding prices for McDonald’s China fell roughly from US$3 Billion to US$2 Billion after McDonald’s decided to retain a 25% stake. McDonald’s also decided to not sell its South Korean fast food outlets. During the same month, McDonald’s announced plans to begin online-to-offline (O2O) strategy to allow customers to digitally order, pay, and customize their meal. The pilot phase of the O2O strategy will cover 1,000 restaurants (~40% of its restaurants) located across 13 Chinese cities.
- In October 2016, Wumart’s bidding partner, the California-based private equity firm TPG Capital, exited the bidding process for McDonald’s China. The remaining bidders included Bain Capital and Green-Tree Hospitality (partners), Carlyle Group and CITIC Group Corp. (partners), Wumart Stores Inc. (former partner of TPG Capital), and Beijing Sanyuan Group (see Beijing Capital Agribusiness Group).
- In June 2016, McDonald’s Corporation was exploring selling its mainland Chinese and Hong Kong stores. Potential bidders include Bain Capital, TPG Capital, Carlyle Group, Beijing Capital Agribusiness Group, and GreenTree Hospitality.
- In April 2015, McDonald’s announced it would close dozens of its restaurants in mainland China. As of mid-2015, McDonald’s China had more than 2,000 restaurants.
- In November 2014, McDonald’s China’s supply chain came under increased scrutiny after the US Department of Agriculture approved a genetically modified (GM) potato developed by J.R. Simplot, a McDonald’s supplier.
- In August 2014, McDonald’s in Hong Kong stopped selling fresh corn cups, green salad and fresh lemon tea as these items were primarily sourced from OSI processors in Hebei and Gaungzhou.
- In July 2014, Shanghai Husi, a division of US-based OSI Group LLC, was found to have sold expired meat to McDonald’s, Pizza Hut, Papa John’s, Seven-Eleven and FamilyMart (Japan-based convenience store).
- In October 2012, the Vice President of Brasil Foods announced that his company was partnering with CITIC’s Dah Chong Hong (DCH) to construct a pork and poultry processing in China in late 2013.
- Founded in 2009 and headquartered in Beijing, Beijing Capital Agribusiness Group is a conglomeration of Beijing Sanyuan Group (Dairy), Beijing Huadu Group (Poultry), and Beijing Dafa Livestock. Beijing Sanyuan (SHA:600429) is its only publicly traded company in the group and was the only major dairy that was not implicated in the 2008 melamine scandal.
- Founded in 1994 and headquartered in Beijing, Wumart is one of China’s leading retail chains. Their outlets are primarily located in the northern provinces of Beijing, Zhejiang, Tianjin and Hebei.
- In October 1990, McDonald’s opened its first restaurant in mainland China (Shenzhen, Guangdong Province). In April 1992, McDonald’s opened its first restaurant in Beijing.
- Founded in 1979 and headquartered Beijing, CITIC Group (formerly CITIC Pacific; HKG:0267) is a state-owned conglomerate. Dah Chong Hong Holdings (Hong Kong listed) and Citic Guoan Wine (Shanghai listed) are subsidiaries of CITIC.
- Founded in 1979 and headquartered in Hong Kong, China Overseas Land & Investment, aka COLI (HKG:0688), is an investment firm that focuses on real estate and property development. COLI is a subsidiary of the state-owned enterprise China State Construction Engineering Corporation (CSCEC), while CITIC Group is COLI’s second largest shareholder.
- In 1975, McDonald’s opened its first restaurant in Hong Kong.
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