Fast food chain McDonald’s (NYSE:MCD) announced on Monday that it will acquire Carlyle’s minority stake in the strategic partnership that operates and manages the McDonald’s business in mainland China, Hong Kong, and Macau.
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The CITIC consortium, one of China’s largest conglomerates, will continue to have a controlling ownership stake in McDonald’s China and will own 52% after the completion of the transaction. McDonald’s will retain a minority stake but will increase it to 48% from 20%.
The acquisition of Carlyle’s stake is expected to be completed in the first quarter of next year.
The company stated in its press release that “the acquisition will have a minimal impact on our near-term Operating Income and Earnings Per Share.” In FY22, mainland China and Hong Kong together made up around 5% of systemwide sales and 3% of its operating income.
What is the Future Price of McDonald’s Stock?
Analysts remain bullish about MCD stock with a Strong Buy consensus rating based on 22 Buys and five Holds. After a 6.5% gain in share price on a year-to-date basis, the average MCD price target of $310.42 implies an upside potential of 12.3% at current levels.
