A smile a day keeps the worries away: A Ronald McDonald statue outside a McDonald's outlet in Hangzhou, Zhejiang Province. (Photo : Getty Images)
It seems that Ronald McDonald is set to step his big, bright red shoes on many parts of Asia.
McDonald’s Corporation announced on its website on March 31 that it plans to further expand its presence in Asia, particularly in China, Hong Kong and South Korea.
“We’re in the midst of transforming our business and taking a strategic and thoughtful approach to enhance our ability to grow around the world,” said Stephen James “Steve” Easterbrook, McDonald’s president and CEO.
Over the next five years, the company will set up more than 1,500 restaurants in the three countries it specified.
It will likewise look for “strategic partners” who will do the following things for the company: “add value,” “unlock growth potential,” “enhance its competitive advantages and resources” and “increase capital resources.”
The company is also considering Japan and Taiwan as potential strategic partners.
“Asia represents a significant area of opportunity for McDonald’s to blend our global quality standards with local insights and expertise from partners who share our vision and values,” said Easterbrook.
On May 4, 2015, Easterbrook named China as one of the “high-growth markets--markets with relatively higher restaurant expansion and franchising potential.”
According to the British executive, South Korea, Russia, Italy, Poland, Spain, Switzerland and the Netherlands join China as high-growth markets.
These eight countries or markets “accounted for about 10 percent of the company's 2014 operating income.”
Australia, Canada, France, Germany and the U.K., the “international lead markets,” accounted for about 40 percent.
McDonald’s announcement of its expansion in Asia happened “after closing more stores than it opened in the U.S. for the first time in over 40 years last year,” according to Fox Business.
In 2013, the company earned $1.4 billion. Then in 2014, it fell to $1.1 billion. It announced a $100-million cost-cutting measure in Feb. 2015, reported Chicago Magazine.
Andrew J. McKenna announced on April 6 that he will step down as chairman of the board. He held the position for 12 years.
Easterbrook succeeded Donald "Don" Thompson as CEO when the latter left on March 1, 2015.
