McDonald's to expand in China with 200 new stores in next three years

CHICAGO, Dec. 15 (Xinhua) -- McDonald's announced on Wednesday that it is planning its biggest expansion in China by raising its capital spending in China by 40 percent next year and opening 200 new stores in the next three years.

According to a Wednesday report of The Wall Street Journal, the fast-food company, which has entered the Chinese market for 20 years, is facing fierce competition from rivals such as Yum! Brands Inc.. KFC, owned by Yum! Brands Inc., has about 3,200 stores in China, while McDonald's only has 1,100.

Besides expanding its presence by 40 percent in China, the company also decided to upgrade designs for new stores and remodel 80 percent of the existing stores. About half of the 200 new stores will be drive-through locations.
Kenneth Chan, McDonald's chief executive of China, reportedly said on Wednesday that the company will 'change the face of the brand to become a place where young consumers want to come and stay,' and the red and yellow decor will be changed into a more relaxed and European style design.

Meanwhile, the fast-food giant also planned to raise prices accordingly, in order to offset higher input costs.

The company said last Wednesday that McDonald's global comparable sales for November were up 4.8 percent, which was weaker than expected, while comparable sales in Asia/Pacific, Middle East and Africa jumped 2.4 percent, driven by positive results in China and most other markets.