China is still on the menu for ambitious US burger giant McDonald's

China will still be on the menu for McDonald’s. The $100bn €93bn US burger giant is poised to sell its outlets in mainland China and Hong Kong for up to $2bn.

Seeing this as a simple retreat from the Middle Kingdom is tempting, but wrong. As elsewhere, franchising is a better business than owning and operating stores. There are other benefits to having a Chinese partner too.

The Oak Brook, Illinois company has picked private equity firm Carlyle and local outfit CITIC Group as buyers, according to Reuters.