McDonald's plans to open 2,000 restaurants in five years

A customer holds a McDonald's ice cream in front of its Nanjing East Road store in Shanghai, July 27, 2017. [Photo/VCG]

McDonald's Corporation is expected to open 2,000 new restaurants in five years, taking the total number of its outlets in China to 4,500, it said on Tuesday.

The plan is part of a strategic partnership with Citic Limited (CITIC), Citic Capital Partners, and The Carlyle Group.

The new venture, jointly established by CITIC Ltd, CITIC Capital, Carlyle Capital and McDonald's, paid $2.08 billion for the US fast food chain's business of about 2,700 stores on the Chinese mainland and in Hong Kong, under an agreement reached this January. The transaction of the deal was completed on July 31.

The new company will become McDonald's largest franchisee outside the US, with CITIC Ltd and CITIC Capital holding a majority 52 percent stake in the new company, while Carlyle Capital will hold 28 percent, and McDonald's 20 percent.

The new company aims to drive double-digit sales growth in each of the next five years, including delivery hub coverage of over 75 percent of restaurants, McDonald's said.

On the Chinese mainland, the company is expected to fasten its pace from opening about 250 outlets per year in 2017 to 500 per year in 2022.

Nearly half of the new stores will be opened in tier 3 or 4 cities in China. About 90 percent of its restaurants will offer digitalized and personalized dining experiences.