KUALA LUMPUR: McDonald’s, which unveiled global turnaround plans earlier this month that will see it selling more of its company-operated outlets to franchises, has closed three outlets in Malaysia this year after carefully assessing their contribution to its overall business.

McDonald’s Malaysia managing director Stephen Chew said the firm has taken the opportunity to take stock of its business and to move forward from a position of strength.

Chew said the affected employees have been offered work in other outlets.

However, the fast food giant will open eight stores this year, he told The Edge Financial Daily via email.

These include five outlets that have opened their doors in Kajang Perdana, Bandar Seri Putra in Kajang, Jalan Gambang in Kuantan, Sabak Bernam in Selangor and Kota Masai in Pasir Gudang, Johor.

“We remain committed to our customers’ needs and look forward to serving them in our many other restaurants in Malaysia,” said Chew in response to news reports on May 4 about McDonald’s restructuring its international operations to deliver some US$300 million (RM1.07 billion) in annual net savings. 

Under the plan, the US burger joint will refranchise 3,500 restaurants by 2018, lifting the share of franchised units — those not owned by the company — from 81% to 90% worldwide.

McDonald’s will restructure its business into four areas: US-based stores; international lead markets (including Australia, Canada, France, Germany and the UK); high-growth markets (China, Italy, Poland, Russia and four other nations); and foundational markets (10 other countries). 

In Malaysia, McDonald’s is operated by privately-held Golden Arches Restaurants Sdn Bhd. Its shareholders comprise McDonald’s Corp, which holds a 49% stake in the company, followed by Makan Holdings Pte Ltd with a 26% equity interest and McDonald’s Apmea LLC owning the remaining 25%. It was incorporated on Dec 10, 1980 with a total issued and paid-up capital of RM20 million. 

A check with the Companies Commission of Malaysia showed that McDonald’s Malaysia’s results  for the financial year ended Dec 31, 2014 (FY14) were still unavailable.

For FY13, McDonald’s Malaysia registered a net profit of RM130.19 million, a 14.85% increase from RM113.35 million in FY12. 

Revenue for the year rose 4.77% to RM1.251 billion from RM1.194 billion in FY12. Its gearing ratio fell to 0.45 times in FY13 from as high as 2.21 times in FY09.

This article first appeared in The Edge Financial Daily, on May 11, 2015.