McDonald’s has struck a deal to place restaurants in Evergrande’s residential complexes in China.
The arrangement helps solve two problems for both parties: it will provide space for the fast food chain to expand, facilitating its goal to almost double its number of outlets in China within five years and, in particular, giving it access to the untapped markets of the country’s smaller cities.
For Evergrande, China’s second-largest and most indebted developer, the arrangement is an opportunity to lease out storefront properties, of which it has excess supply, say analysts.
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