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.
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.
