CHICAGO and HONG
KONG, Nov. 20, 2023 /PRNewswire/ -- McDonald's
Corporation (NYSE: MCD) and global investment firm
Carlyle (NASDAQ: CG) today
announced that McDonald's has agreed to acquire Carlyle's minority ownership stake in the
strategic partnership that operates and manages McDonald's business
in mainland China, Hong Kong and Macau.
The CITIC Consortium, mainly through its equity affiliate CITIC
Capital, will maintain its controlling ownership stake. Upon
completion of the transaction, the CITIC Consortium will continue
to own 52%, and McDonald's will remain a minority partner while
increasing its stake from 20% to 48% ownership.
"Our strategic partnership with CITIC and Carlyle has been extremely successful in
growing McDonald's presence in the region since it began.
China is now our second largest
market; we've doubled our restaurants to more than 5,500 since
2017," said Chris Kempczinski,
McDonald's President and Chief Executive Officer. "We believe there
is no better time to simplify our structure, given the tremendous
opportunity to capture increased demand and further benefit from
our fastest growing market's long-term potential."
The business has generated Systemwide sales growth of more than
30% in the market year-to-date since September 2019. Going forward, the partners will
continue working together as the brand executes on its Accelerating
the Arches growth strategy in the market, working to deliver on a
commitment to develop and open new restaurants and foster deeper
engagement with customers.
"We very much appreciate the strong partnership we have had
with CITIC Capital and McDonald's Corporation. Together, we
transformed the business, accelerating its growth profile
and revolutionizing its digital marketing and operational
capabilities," said X.D. Yang, Chairman of Carlyle Asia. "The
business has always delivered outstanding results and we wish
them every success on their next phase of growth."
"As McDonald's China's
controlling shareholder, we are thrilled by McDonald's
Corporation's continued commitment to our long-term partnership and
the China market," said
Yichen Zhang, Chairman and CEO of
CITIC Capital and Chairman of McDonald's China." As we reach towards our goal of
10,000+ restaurants by 2028, we are more confident than ever in our
ability to serve the Chinese consumer with McDonald's iconic
taste."
The deal is contingent upon customary regulatory approvals and
is expected to close in the first quarter of 2024.
ABOUT McDONALD'S
McDonald's (NYSE: MCD) is the world's leading global foodservice
retailer with over 40,000 locations in over 100 countries.
Approximately 95% of McDonald's restaurants worldwide are owned and
operated by independent local business owners.
ABOUT CARLYLE
Carlyle (NASDAQ: CG) is a global
investment firm with deep industry expertise that deploys private
capital across three business segments: Global Private Equity,
Global Credit and Global Investment Solutions. With $382 billion of assets under management as of
September 30, 2023, Carlyle's purpose is to invest wisely and
create value on behalf of its investors, portfolio companies and
the communities in which we live and invest. Carlyle employs more than 2,200 people in 28
offices across four continents. Further information is available at
www.carlyle.com . Follow Carlyle
on X @OneCarlyle.
ABOUT CITIC CAPITAL
Founded in 2002, CITIC Capital Holdings Limited is an alternative
investment management and advisory company. The firm manages over
USD17.6 billion of capital across 100
funds and investment products through its multiple asset class
platform covering private equity, real estate, structured
investment & finance, and asset management. CITIC Capital has
over 290 portfolio companies that span 11 sectors and employ over
600,000 people around the world.
Forward-Looking Statements
This press release contains forward-looking statements about
future events and circumstances. Generally speaking, any statement
not based upon historical fact is a forward-looking statement. In
particular, statements regarding McDonald's plans, strategies,
prospects and expectations regarding its business and industry,
including expected timing and the anticipated financial and other
benefits of the proposed transaction with Carlyle, are forward-looking statements. They
reflect McDonald's expectations, are not guarantees of performance
and speak only as of the date hereof. Except as required by law,
McDonald's does not undertake to update such forward-looking
statements. You should not rely unduly on forward-looking
statements. McDonald's business results are subject to a variety of
risks, including those that are described in its Quarterly Report
on Form 10-Q for the quarter ended September
31, 2023 and subsequent filings with the Securities and
Exchange Commission.
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SOURCE McDonald's Corporation