CONNECT WITH US
eCommerce

eCommerce

McDonald’s supersizes its north and east India bet to $80 million, even as rising costs squeeze profit

ET Retail – Ecommerce logo

Published on

Add as a preferred source on Google
McDonald’s supersizes its north and east India bet to $80 million, even as rising costs squeeze profit

McDonald’s supersizes its north and east India bet to $80 million, even as rising costs squeeze profit

McDonald's India is increasing its investment to approximately $80 million for growth and digitisation over the next two years. The rise in competition from KFC and Burger King prompts this expansion effort. Despite the challenging environment due to inflation, the company aims for profitability while maintaining value for customers. McDonald's India's north and east division expects to achieve revenues of ₹2,000 crore by FY27.

Share Icon Copy Link Share on Whatsapp Share on Linkedin Share on X Share on Telegram Share on Facebook

New Delhi: Quick service chain McDonald's India's north and east business has revised investments upwards to about $80 million over the next two-and-a-half years on store expansion and digitisation, to meet consumer demand, and as competition from rivals such as KFC operator Devyani International and Burger King heats up, though it expects profitability to remain under pressure amid surging food and packaging inflation.

"This will be our highest investment in a two-year period. Up till now, we have invested $175 million in the business, through our own family offices; future investments will also be funded internally from group companies," Sanjeev Agrawal, chairman of McDonald's India (North & East), told ET in an interview. The chain had previously said it would invest US close to $100 million over the next four years to accelerate its business.

The north and east business of McDonald's operated by Connaught Plaza Restaurants (CPRL), was acquired by MMG Group in 2020 from the Chicago-based McDonald's Corp after the latter's prolonged legal tussle with CPRL's previous head Vikram Bakshi.


Source link
Related Topics:eCommerce

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.