The Golden Arches are going to double in number in mainland China by 2022 as McDonald's Corp (MCD) capitalizes on a strategic deal in the world's second largest economy, Reuters reported.
McDonald's plans to add 500 stores annually until 2022 as part of the fast food chain's partnership with Carlyle Group and state-backed Chinese conglomerate CITIC Ltd (CTPCF) . McDonald's agreed earlier this year to sell most of its China and Hong Kong stores to the two companies for $2.1 billion and add 1,500 stores over the next five years.
But McDonald's is upping the ante, adding an estimated 4,500 locations instead. The chain is looking to use the deal as a means of expanding in China without using much of its own capital. It's targeting double-digit sales growth in mainland China over the next five years.
The deal won approval from regulatory authorities last week, delivering a 52% stake of McDonald's China and Hong Kong business to CITIC and a 28% stake to Carlyle.
McDonald's stock traded slightly up 0.25% premarket to $155.35 per share.
More of What's Trending on TheStreet: