McDonald's is significantly increasing its presence in China, planning to reach 10,000 locations in mainland China by the end of 2028, up from over 7,700 at the end of 2025 [1]. This expansion comes as many international consumer brands, such as Starbucks, Nike, and LVMH, are reducing their footprints in the country [1]. China is a major source of McDonald's growth, with half of the company's new stores last year opening in mainland China [1]. The China business is part of McDonald's international developmental licensed markets segment, which reported a 3.4% rise in same-store sales in the first quarter, according to the company's Thursday report [1].
A majority stake (52%) in McDonald's China business is owned by Chinese investor Trustar, a private equity unit of Citic Capital [1]. The brand continues to resonate with Chinese consumers, leveraging nostalgia and value. For example, the reintroduction of classic strawberry and vanilla milkshakes at select stores in May 2024 generated significant consumer interest, with some customers traveling long distances to purchase the product [1]. The milkshake, discontinued in 2014, was brought back at only 44 stores in 15 cities, including Beijing [1].
Despite a challenging economic environment and increased competition from local brands, McDonald's has maintained its reputation for international standards in food quality and consistency while remaining competitive on price [1]. The company's strategy contrasts with other foreign brands that have struggled as Chinese consumers increasingly favor local labels due to nationalism and lower prices [1].
No specific analyst opinions or forward-looking statements beyond the store expansion plan and sales growth data were provided in the article [1].
CONCLUSION
McDonald's is defying the trend of international brands retreating from China by aggressively expanding its store count and leveraging both nostalgia and affordability to attract Chinese consumers. The company's strong sales growth and continued investment signal confidence in the Chinese market, positioning McDonald's as a leading foreign fast-food brand in the region.