McDonald's to accelerate store expansion in China

McDonald's Corp said it remains optimistic about its performance in China and plans to accelerate store expansion in the country as part of its international growth push.

The fast-food giant reported a 1 percent decline in global comparable sales in the first quarter of 2025, compared with that of a year ago. Its US comparable sales fell 3.6 percent and international developmental licensed markets increased 3.5 percent. Executives pointed to China as a bright spot amid an uneven global landscape.

"In China, our performance remained stable, driven by an increase in delivery share, the success of Big Bites, Value meals and strong performance in chicken," said Ian Borden, McDonald's chief financial officer, during the company's earnings call. "We're encouraged by what we're seeing from our China business."

Chairman and CEO Chris Kempczinski echoed the sentiment in the quarterly earnings release, emphasizing McDonald's enduring brand value in times of economic uncertainty.

China continues to play a central role in McDonald's international strategy. Of the roughly 2,200 new stores the company plans to open globally in 2025, nearly 1,000 are expected to be in China, the company said earlier, according to Yicai, a Shanghai-based business media.

That would account for almost half of its international franchised expansion this year. The company currently operates over 7,000 restaurants in China, with more than half located in third to fifth-tier cities.

Since 2017, McDonald's China has been operated by a consortium led by CITIC Capital. Its highly localized supply chain has helped insulate the business from external shocks, including the recent trade tension with the US.

"More than 90 percent of our ingredients such as chicken and potatoes are produced, processed and procured within China," said Gu Lei, McDonald's China chief impact officer, in an interview with Yicai.

In response to a nationwide shift toward rational consumption, McDonald's China launched a "Value Year" campaign in 2025, featuring four major initiatives aimed at enhancing perceived value: Big Mac, Mix and Match 1+1, a membership rewards program and a Gold Card offering.

"Chinese consumers are not just chasing low prices, they're looking for quality and experience at a reasonable price," Gu said, citing findings from a survey of over 40,000 young consumers.

The company also continues to diversify its store formats to cater to local preferences, expanding drive-through locations, smart pickup options, family-friendly restaurants and mobile McCafe carts to increase convenience and customer engagement.

"McDonald's localization strategy has proven highly effective," said Zhu Danpeng, an independent food and beverage industry analyst. "The company has deeply tapped Chinese dietary culture and consumer habits through a localized operating system and product innovation.

"In today's uncertain global economic climate, consumers are increasingly drawn to brands that deliver strong value for money — an area where McDonald's continues to excel. Its sales success reflects a keen understanding of evolving local market dynamics," said Zhu.

wangzhuoqiong@chinadaily.com.cn