McDonald’s Expands Presence in China Amidst Challenges for Other Brands
In a notable divergence from the trend of many international consumer brands retracting their operations in China, McDonald’s is actively expanding its footprint in the country. The fast-food giant has announced plans to significantly increase its number of outlets, aiming to reach 10,000 locations by 2028, up from over 7,700 at the end of 2025. This ambitious strategy positions China as a key market for McDonald’s, second only to the United States in terms of store count.
During the recent May Day holidays, consumers like Yue Ma flocked to McDonald’s newly launched McDonaldland store in Beijing’s Chaoyang Park. This location is one of the few in the country to reintroduce the classic strawberry and vanilla milkshakes, which had been discontinued in 2014. Ma, who reminisced about his childhood experiences with the brand, emphasized the nostalgia associated with McDonald’s, stating, “McDonald’s left a great first impression for those eating Western fast food for the first time.”
While other brands such as Starbucks, Nike, and LVMH face challenges in the Chinese market, McDonald’s is capitalizing on its unique brand appeal. The company reported that half of its new store openings in the previous year occurred in mainland China, underscoring the region’s importance for unit growth. The international developmental licensed markets segment, which includes China, saw a 3.4% increase in same-store sales during the first quarter of this year.
A significant portion of McDonald’s operations in China is owned by Trustar, a private equity unit of Citic Capital, which holds 52% of the business. This partnership allows McDonald’s to leverage local insights while maintaining its global standards for food quality and service.
The brand’s enduring popularity in China can be traced back to its first restaurant opening in 1990, coinciding with the country’s economic reforms and increasing affluence. Last summer, the reintroduction of the milkshake generated considerable buzz, leading McDonald’s to bring it back to select stores in 15 cities, including Beijing.
In a market increasingly dominated by local competitors, McDonald’s has successfully positioned itself as a provider of quality at an affordable price. The fast-food chain offers value-oriented menu items, including the “one-plus-one” combo, which allows customers to purchase a burger paired with a drink or dessert for as little as 14 yuan (approximately $2.06). This pricing strategy appeals to consumers in a challenging economic climate while maintaining the brand’s reputation for quality.
The McDonald’s menu in China features a blend of classic items like the Big Mac alongside localized offerings such as honey barbecue chicken bones and dragon fruit McFlurries. This adaptability to consumer preferences has helped the brand maintain relevance in a rapidly changing market.
Tracy Dai, director of operations at Shanghai-based branding consultancy China Skinny, noted that the Chinese consumer’s mindset has shifted from merely seeking low prices to valuing overall experience and quality. “McDonald’s is slightly more expensive, but when you think about the experience and the taste and quality you get, there’s definitely more value,” she explained.
As McDonald’s continues to navigate the complexities of the Chinese market, its focus on nostalgia, quality, and affordability positions it well for future growth, even as other international brands struggle to maintain their foothold.
