McDonald’s sells off over 2,000 outlets in China, HK

 
Pre-reading questions:

  1. How often do you eat burgers?
  2. Do you like McDonald’s?
  3. Do you visit other foreign fast food chains in your area?

 
McDonald’s has handed 80% of its operations worth $2.1 billion to Citic group and Carlyle group. The two firms will take over 2,000 McDonald’s outlets in China and Hongkong. Under the new partnership, Citic takes a 52% stake while Carlyle handles 28% of the share. The American fast food chain keeps the remaining portion of 20%.

This step is in line with the company’s goal to add more outlets in China, Hongkong and South Korea in the next 5 years.Yum brands, the owner of KFC and Pizza Hut, is also working on a new business strategy. Both competing companies intend to recover from food safety scandals currently reported across Asia.
 
Vocabulary:
firm – a business unit or enterprise
hand – to give, pass
stake – an interest or share
remaining – still present, not yet used
strategy – a careful plan or method for achieving a particular goal
 
Comprehension Questions:

  1. To which group of companies has McDonald’s handed most of its operations?
  2. Where are the locations of the outlets that the two companies will take over?
  3. What is the company’s next goal?
  4. What is the rival company of McDonald’s in Asia?
  5. What do the competing companies intend to do?

 
Express Your Opinion:

  1. Both McDonald’s and Yum Brands are both working hard to fight the food safety scare across Asia.
  2. Define “fast food” in five adjectives.
  3. Fast food, although not healthy, is still popular around the world.