China’s state-owned CITIC Group agreed to buy a majority stake in McDonald’s franchising rights in the country for the next two decades. Should the $2 billion plus sale be approved, the company will take control of more than 1,700 McDonald’s restaurants, with a stated goal of opening another 1,500 in the next five years — setting it up to become the company’s biggest franchise owner, ahead of Brazil’s Arcos Dorados.
It could also put competitors — both domestic franchises and international brands — in a tough spot.
This will be the first time a state-owned company has taken a majority stake in a major player in the fast-food space
The SEIU’s meddling in the China deal is part of it’s multi-front pressure campaign against McDonald’s, including the flagship Fight For $15 campaign to raise wages back in the U.S.