On October 21, Citic Capital Holdings Ltd. announced that its private equity investment arm, Citic Capital, has signed an agreement with Citic Limited to acquire shares in McDonald’s operations in mainland China, Hong Kong, and Macau (collectively referred to as “McDonald’s China”). Following the transaction, Citic Capital and its private equity business, Citic Capital, will remain the majority shareholders of McDonald’s China.
In a statement, Citic Capital remarked that the “Golden Arches” hold significant importance as a milestone investment. Since acquiring a stake in McDonald’s China in 2017, the business has experienced rapid growth and maintained a steady development trajectory. Driven by a strong confidence in China’s economic and consumer market outlook, as well as optimistic views on McDonald’s China’s potential for future growth, the Citic Capital consortium has decided to increase its investment in the brand.
In 2017, Citic Capital, along with Citic Limited and Carlyle, entered into a strategic partnership with McDonald’s. Encouraged by the prospects for McDonald’s China, Citic Capital acquired a 22% stake from Citic Limited in early 2020, raising its ownership to 42%. In 2023, McDonald’s globally announced the acquisition of Carlyle’s minority stake in McDonald’s China, increasing its ownership share to 48%. In 2024, Citic Capital announced a further investment in McDonald’s China, with the transaction bringing the consortium’s total ownership to 52%.
Industry experts view this sustained investment as a clear indication of the Citic Capital consortium’s long-term confidence in McDonald’s China.
“As the majority shareholder of McDonald’s China, we are fully committed to advancing the brand into a new phase of development, achieving our vision of ‘more powerful, better, and smarter’ stores,” said Zhang Yichen, Chairman and CEO of Citic Capital and Chairman of the Board for McDonald’s China. He expressed optimism about continuing the fruitful business collaboration with Citic Limited to contribute to the high-quality development of China’s economy and consumer market.
