While many international brands retreat, McDonald’s is supersizing its China business

McDonald’s is significantly expanding its presence in China, aiming to operate 10,000 locations by 2028, up from over 7,700 stores expected by the end of 2025. This growth comes amid a broader retreat by many international consumer brands such as Nike and Starbucks, which have scaled back operations in the country. McDonald’s success in China is driven by a combination of nostalgia and affordability, appealing to both older consumers who remember the brand’s early days and younger customers seeking value amid economic challenges. The fast-food giant’s China business is a major contributor to its global growth, with half of its new stores opened last year located in mainland China. The company’s international developmental licensed markets segment, which includes China, saw same-store sales rise 3.4% in the first quarter. More than half of McDonald’s China operations are owned by a private equity unit of Citic Capital, reflecting a strong local partnership. The brand’s nostalgic appeal is underscored by the reintroduction of classic menu items like the strawberry and vanilla milkshakes, which were discontinued in 2014 but brought back in select stores this year, drawing long-time fans and generating viral buzz. McDonald’s ability to maintain international standards of food quality and consistency while offering competitive prices has helped it withstand challenges faced by foreign brands in China. Increasing nationalism and the rise of domestic brands have shifted consumer preferences toward local options, but McDonald’s has managed to retain its reputation and relevance. Its strategy of combining Western fast-food familiarity with affordability resonates in a market where consumers are more price-conscious due to economic pressures. This positions McDonald’s as a rare international brand thriving in a complex and evolving Chinese consumer landscape.