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McDonald's to open 20 locations in western Siberia

McDonald's is reaching out into the remote area of western Siberia.

August 24, 2015

McDonald's will open 20 stores in western Siberia after signing an agreement with GiD LLC, according to The Chicago Tribune. The chain has 500 restaurants in 125 cities in Russia, and there will be 20 more in the Novosibirsk, Tomsk, Kemerovo and Altay regions of western Siberia.

In an email to The Chicgo Tribune, McDonald's spokeswoman Heidi Barker Sa Shekhem said the deal is part of the company's restructuring plan that seeks to "return excitement to our brand and unlock financial value." 

A key part of that plan is selling company-owned restaurants to franchisees. If McDonald's hits its target of selling 3,500 restaurants to franchisees by the end of 2018, 90 percent of its restaurants around the world would be run by franchisees. The majority of McDonald's restaurants in Russia are company owned, Barker Sa Shekhem told The Chicago Tribune.

Sales in McDonald's restaurants that have been open at least 13 months have declined globally for five consecutive quarters and in the U.S. for seven straight quarters. In July, McDonald's reported a quarterly profit of $1.2 billion, down 13 percent from the same period a year ago.

While domestic sales have lagged, McDonald's executives said last month that global sales comparisons are expected to turn positive in the third quarter.