McDonald's agrees to sell 80% of its business in ChinaJanuary 9, 2017 - 16:47 AMT PanARMENIAN.Net - McDonald's has agreed to sell 80% of its business in China and Hong Kong, as part of plans to franchise more of its restaurants worldwide. China's state-owned investment group Citic, and US private equity firm Carlyle Group, will take control of the operations in a deal valued at $2.1bn. McDonald's owns and operates about 65% of its 2,000 China outlets. Franchising allows it to take a slice of sales while cutting operating costs. McDonald's is trying to streamline its global operations, and changing its ownership structure to revolve more around franchises is a major part of that revamp. In March last year, the firm said it was seeking partners to help it add more than 1,500 restaurants in China, Hong Kong and Korea over the next five years. Under the agreement signed Monday, the US fast food giant will keep a 20% stake in its China business. Citic will hold a 52% share in the partnership while Caryle takes 28% of the new business. Competitor Yum Brands, the owner of KFC and Pizza Hut, is also restructuring its China business. Both McDonald's and Yum Brands have been facing increasing competition from cheaper local rivals, particularly in China, where they are trying to recover from food safety scares. Related links: Top stories Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". The earthquake caused a temporary blackout, damaged many buildings and closed a number of rural roads. Partner news | Czech-Armenian military cooperation discussed in Yerevan A delegation led by the Director General for the Industrial Cooperation Division of the Ministry of Defence of the Czech Republic visited Armenia. U.S. welcomes efforts to define Armenia-Azerbaijan border The United States welcomes efforts to define the border between Armenia and Azerbaijan, says Vedant Patel. Biden honors resilience of Armenian people on April 24 U.S. President Joe Biden has issued a statement on the 109th anniversary of the Armenian Genocide. Ex-Karabakh leader moved to solitary confinement cell in Baku, his son says David Vardanyan is the son of former Karabakh leader Ruben Vardanyan who who is currently imprisoned in Azerbaijan. |