CITIC Capital Holdings Ltd announced that its private equity arm, Trustar Capital, has signed an agreement with CITIC Group to acquire its shares in McDonald’s businesses on the Chinese mainland, Hong Kong and Macau.

Following this transaction, the CITIC Capital consortium, comprising CITIC Capital and its private equity division, Trustar Capital, will remain the majority shareholder with 52 percent stake in McDonald’s China, while McDonald’s Corporation holds 48 percent. .

This increased participation underlines the consortium’s strong and long-term confidence in the potential of McDonald’s China, the company said.

CITIC Capital has been instrumental in McDonald’s significant expansion and localization efforts in China since 2017, helping to make it the second largest market for McDonald’s in the world.

“We are pleased to note that, based on great confidence in the growth prospects of the Chinese economy and the consumer market, as well as the development potential of McDonald’s China, the private equity arm of CITIC Capital, Trustar Capital, has increased its investment in McDonald’s China,” according to McDonald’s China.

“The transaction further simplifies the ownership structure. Our ‘Bigger, Better, Smarter’ vision to reach 10,000 restaurants remains unchanged, and with the support of our shareholders, we will continue to drive the future growth of our business,” he said. the company said. .

Since CITIC Group and CITIC Capital’s investment in McDonald’s China in 2017, the fast food giant has seen expansion and localization in China.

McDonald’s has more than doubled its presence, reaching 6,500 restaurants in September 2024, more than 2.5 times the 2017 number.

This growth cemented China as McDonald’s second-largest and fastest-growing market in the world.

CITIC Group’s resources and network have provided McDonald’s China with support for its brand development and operational expansion.

Through CITIC Capital, McDonald’s has forged strategic partnerships with major real estate developers, resulting in hundreds of new premier store locations each year.

This strategic real estate alignment has been instrumental in McDonald’s rapid market penetration in various cities, from high-traffic urban centers to emerging areas.

Beyond expansion, CITIC Capital has helped McDonald’s adapt its store formats to meet the needs of diverse consumer groups. By adapting store designs based on local demographics and development stages, McDonald’s China was able to innovate and improve its in-store experiences, further improving customer satisfaction and brand loyalty.

Under the leadership of CITIC Capital, McDonald’s China has undergone a major digital transformation. CITIC Capital collaborated with Tencent to launch a mini WeChat program for McDonald’s China in six weeks. From a mini-program to today’s digital ecosystem, the company now has an omnichannel app, nationwide delivery, and an integrated membership system.

McDonald’s China’s digital platforms have more than 300 million registered members, serving more than 1 billion customers each year. Digital orders now account for more than 90% of total orders at McDonald’s China.

McDonald’s China R&D center in Nanjing, Jiangsu province, has developed localized digital solutions, such as the McDonald’s app, RGM Boss (restaurant management system), and advanced digital food safety systems. The company plans to invest 4 billion yuan ($560 million) in digital search over the next five years.

In July 2024, McDonald’s China opened a smart supply chain industrial park in collaboration with four key suppliers in Hubei province. The 1.5 billion yuan investment aims to improve productivity and promote green development in the central and western regions.