McDonald's has over 1,400 restaurants in China, which is their third largest market globally. They opened 200 new stores in China in 2011 and plan to open between 225-250 new stores in 2012. McDonald's also plans to invest $2.9 billion in 2012 to open an additional 1,300 locations worldwide and renovate existing restaurants, with a focus on expansion in China. McDonald's sees opportunities to grow in China through new concepts like drive-thrus, and some Chinese menu items have been successful enough to be exported to other global markets.

1. How Mc.Donalds run their
business in China?
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Hiroki Sato

2. How Mc.Donalds
Mc.Donalds is a fast food chain to expand
on a global scale. And it has been a
mainstay burgers. Number of stores that it
has the shop 32737. It is the second largest
in the world in the restaurant industry
classification in order of the number of
stores.

3. Mc.Donalds's history in China
When McDonald’s first opened in China in
1990, these streets were clogged with
bicycles. But prosperity has brought an
explosion in car ownership. However many
headaches that may mean for Chinese
drivers, McDonald’s saw an opportunity?
called drive-thru. The company opened the
first drive-thru outlet in November, 2005 and
Schwartz says it’s been “very, very
successful.”

4. McDonald's current in China(1)
McDonald's now owns more than 1,400
restaurants in China, which is the
company's third-largest market.
In 2011, the company set a new record
by opening 200 stores.
It plans to open between 225 and 250 out
lets in 2012.

5. McDonald's current in China(2)
McDonald's (MCD -0.26%) has issued
$900 million in debt at a record low coup
on as it prepares to increase spending on
new restaurants and to refurbish existing
restaurants worldwide, with a greater
focus in China.

6. McDonald's current in China(3)
McDonald's currently trails Yum Brands
(YUM +0.02%) in number of restaurants
in China and therefore plans to beef up
its presence in the country. The bond
issuance exemplifies the level of faith of
investors in the company and its strong
fundamentals.

7. McDonald's in China as seen
from the world
Some of the menu ideas developed in
China have been exported to other markets
around the world. Take corn cup as an
example, it was invented by the McDonald's
China research and development center and
proved to be very popular due to its healthy
content and flavor and it has been
introduced to other Asian marketplaces.

8. McDonald's as seen from the
Chinese
That's because Chinese consumers trust
American brands more than their own, says
Shaun Rein, founder of China Market
Research, who studies Chinese consumer
behavior. Rein says that in China,
McDonald's is seen as providing safe and
wholesome food.

9. Mc.Donald's plans
The company expects to incur an
expenditure of $2.9 billion in 2012, up
almost 10% from 2011, as it plans to add
another 1,300 restaurants worldwide and
reimage its existing restaurants.

10. References
⇨ http://money.msn.com/top-stocks/post.aspx?post=48f47
e32-13ce-46e5-88b2-de1664da1078
⇨ http://management.fortune.cnn.com/2012/05/10/mcdon
alds-china-kenneth-chan/
⇨ http://online.wsj.com/article/SB1000142405270230445
9804577285023783102062.html
⇨ http://www.chinadaily.com.cn/business/2008-
09/08/content_7007412.htm
⇨ http://www.npr.org/blogs/thesalt/2012/07/27/15747474
5/mcdonalds-food-has-a-healthy-glow-at-least-in-china