Aug. 21--Should you find yourself in western Siberia in the near future, you'll be able to spot the Golden Arches.
McDonald's is branching out into western Siberia after reaching a new agreement with a franchisee, the company announced Friday. The Oak Brook-based burger giant already has 500 restaurants in 125 cities in Russia. Now there will be 20 more in the Novosibirsk, Tomsk, Kemerovo and Altay regions of western Siberia.
McDonald's signed the agreement with new development licensee GiD LLC.
In an email, 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" and ultimately trim about $300 million in general and administrative expenses by the end of 2017.
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 vast majority of McDonald's restaurants in Russia are now company owned, Barker Sa Shekhem said.
Sales at McDonald's restaurants 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.
gtrotter@tribpub.com
