McDonald's Corp. is planning its biggest ever expansion in China as it faces mounting challenges from competitors and higher food costs amid rising inflation.
The fast-food giant said it plans to raise its investments in China by 40% next year compared with this year.
It will build up to 200 new stores - half of them drive through, more than in any previous year, and swap out the old red and yellow for a more relaxed, European-style bistro design.
"We're committed to China, changing the face of the brand to become a place where young consumers want to come and stay,"said Kenneth Chan, McDonald's chief executive of China.
Mr. Chan also said McDonald's is exploring new franchise models that would give the company the ability to license restaurants within entire provinces in China, rather than city-by-city.
