by Shen Xiaoge

McDonald's plans to accelerate its expansion in China, with 1,000 new stores set to open in 2025, reinforcing its position in one of its fastest-growing markets. The announcement comes despite a slight decline in its 2024 full-year net profit.

The company’s latest earnings report showed a 3% drop in annual net profit to $8.22 billion, while total revenue grew 2% to $25.92 billion. Fourth-quarter revenue fell short of expectations at $6.39 billion, with U.S. same-store sales declining 1.4%, partly due to an E. coli outbreak last October. CEO Chris Kempczinski acknowledged that U.S. consumer spending remained weak.

China, however, remains a bright spot. McDonald's CFO Ian Borden highlighted "encouraging stability" in the market. By the end of 2024, McDonald's had over 6,000 stores in China—more than double the count in 2017, when it shifted to a franchise model in the country. With the planned expansion, China is poised to play an even bigger role in the company’s global footprint.

McDonald's aims to reach 50,000 stores worldwide by 2027, with China driving a significant share of its growth.