McDonald’s Corporation is doubling down on its expansion in China, reaffirming confidence in its largest international market despite global economic headwinds and a 1% decline in worldwide comparable sales for the first quarter of 2025.
Speaking during the company’s earnings call, Chief Financial Officer Ian Borden highlighted China as a bright spot in an otherwise mixed global landscape. “In China, our performance remained stable, driven by an increase in delivery share, the success of Big Bites, Value meals and strong performance in chicken,” Borden said.
Echoing that optimism, Chairman and CEO Chris Kempczinski noted that McDonald’s continues to demonstrate enduring brand value, particularly in times of economic uncertainty.
China is set to play a central role in the company’s international growth strategy. Out of the 2,200 new stores McDonald’s plans to open globally this year, nearly 1,000 will be located in China, according to figures reported by Shanghai-based business media outlet Yicai. That expansion would represent nearly half of the company’s global franchised openings in 2025.
McDonald’s currently operates more than 7,000 restaurants across China, with over half situated in third- to fifth-tier cities. Since 2017, its China operations have been managed by a consortium led by CITIC Capital. The company’s highly localised supply chain — with over 90% of ingredients such as chicken and potatoes sourced within China — has helped shield the business from external disruptions, including recent US-China trade tensions.
“Our localised model has been key to navigating market challenges,” said Gu Lei, Chief Impact Officer of McDonald’s China. “More than 90 percent of our ingredients such as chicken and potatoes are produced, processed and procured within China.”
In response to changing consumer behaviour, the company launched its “Value Year” campaign in 2025. The initiative features Big Mac promotions, a “Mix and Match 1+1” offer, a refreshed membership rewards programme, and an exclusive Gold Card offering, all designed to enhance value perception without compromising on quality.
“Chinese consumers are not just chasing low prices, they’re looking for quality and experience at a reasonable price,” Gu said, citing a survey of over 40,000 young consumers.
McDonald’s has also broadened its store formats to match local preferences, including an increase in drive-throughs, smart pickup counters, family-oriented dining spaces, and mobile McCafe carts — all aimed at boosting accessibility and engagement.
“McDonald’s localisation strategy has proven highly effective,” said Zhu Danpeng, an independent food and beverage analyst. “The company has deeply tapped into Chinese dietary culture and consumer habits through a localised operating system and consistent product innovation.”
“In today’s uncertain global economic climate, consumers are increasingly drawn to brands that deliver strong value for money — an area where McDonald’s continues to excel,” Zhu added.
— China Daily / ANN
