McDonald's Plans Massive Expansion in China

McDonald's (MCD) is planning a massive expansion in China as it seeks to take advantage of rapid economic growth and burgeoning consumer demand.

The restaurant giant will boost investment in China by 40% in 2011,The Wall Street Journal said. The company is planning to build as many as 200 new restaurants across the country.

The company is also remodeling. The new restaurants will bear the familiar golden arches, but will drop the red background in favor of a European bistro style.

"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.

McDonald's hopes that the rebranding will give it scope to introduce more premium products.

High Chinese inflation has increased McDonald's operating costs, putting pressure on margins.