McDonald’s Korea has been put up for sale in the M&A market. It is the first time in six years since 2016 when McDonald’s in the United States tried to sell a Korean McDonald’s according to the localization strategy of its headquarters and failed. The photo shows a McDonald’s store in downtown Seoul. news
McDonald’s Korea has been put up for sale in the M&A market. Following the failed sale in 2016, it is looking for a new owner for the first time in six years.
According to the food industry on the 9th, McDonald’s headquarters is looking for a strategic partnership target for McDonald’s in Korea. Currently, McDonald’s Korea is 100% owned by the US headquarters.
Initially, according to the localization strategy, McDonald’s headquarters in the United States pursued an M&A that sold Korean McDonald’s in 2016 and received only royalties, but failed. At the time, Carlyle, a global private equity fund, formed a consortium with Maeil Dairy to promote the takeover of McDonald’s Korea, but the acquisition was canceled due to the abandonment of Maeil Dairy.
Meanwhile, McDonald’s Korea’s sales (excluding franchisees) last year increased 9.7% from the previous year to 867.9 billion won. It continued in the red with an operating loss of 27.8 billion won and a net loss of 34.9 billion won, but the extent of the loss decreased compared to the previous year. Total sales, including franchise sales, totaled 1 trillion won, the highest since the US headquarters entered the Korean market.
Park Kyung-dam reporter wall@hankookilbo.com