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McDonald’s to Pursue Expansion Opportunities in Africa

McDonald’s to Pursue Expansion Opportunities in Africa

Written by Jason Folkmanis and Janice Kew | From Bloomberg

McDonald’s is looking at potential new markets in Africa after the world’s largest restaurant chain entered a new southeast Asian country for the first time in more than two decades.

McDonald’s will look at a number of nations for restaurant locations in Africa, which is expected to be part of the fast-food chain’s future growth strategy, chief executive Don Thompson said on Monday in an interview in Ho Chi Minh City. On February 8, the Illinois-based company opened its first restaurant in Vietnam, where it’s trying to catch up with rivals, including Burger King Worldwide.

“We’re looking at the opportunities that Africa may yield,” Thompson said. “We’re in ongoing dialogue to build appropriate relationships [on the continent].

“There’s quite a few countries across Africa we want to look at, but Nigeria clearly is a large country that has opportunity,” he said.

The company is looking to developing nations for expansion. The chain posted fourth-quarter profit that was little changed from a year earlier as US same-store sales fell. Sub-Saharan Africa’s economy will expand 6.1% this year, compared with global growth of 3.7%, according to the International Monetary Fund (IMF).

Read more at Bloomberg