Bloomberg News

McDonald’s Considers Dim Sum Bonds as Fundraising Option

February 27, 2012

McDonald’s Corp. (MCD), the world’s largest restaurant chain, is considering selling dim sum bonds again in Hong Kong as one option for raising funds to expand in the world’s second-largest economy.

“At this stage, we are going through various options we have right now,” Kenneth Chan, McDonald’s China chief executive officer, said in an interview in Shanghai today. “We are able to fund our growth in China regardless.”

Dim sum bonds “is one of the options for sure,” he said.

Oak Brook, Illinois-based McDonald’s said last month it plans to increase investment in China, its third-largest market, by 50 percent this year after opening a record 200 stores in 2011. Chan today reiterated that the fast-food chain’s focus will be on opening 225 to 250 outlets this year. He didn’t provide a specific figure for its investment target.

McDonald’s sold 200 million yuan of 3 percent notes in Hong Kong in 2010, becoming the first foreign non-financial company to offer yuan-denominated bonds. The bonds are due in September 2013.

London- and Rotterdam-based Unilever became the first European consumer company to sell so-called dim sum bonds last year to fund its businesses in China.

McDonald’s lags Yum! Brands Inc. (YUM)’s KFC Corp. in China, where KFC’s more than 3,200 outlets outstrip McDonald’s 1,400.

To contact Bloomberg News staff for this story: Michael Wei in Shanghai at mwei13@bloomberg.net

To contact the editor responsible for this story: Stephanie Wong at swong139@bloomberg.net


Too Cool for Crisis Management
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus