McDonald’s Corporation Announces New Developmental Licensee for Its Business in Hungary
McDonald’s Corporation today announced that a share sale and purchase agreement has been signed with Sándor Scheer, a partner keen to become the Developmental Licensee (DL) for its Hungarian market.
Mr. Scheer is founder, shareholder and CEO of Market Építő one of the largest construction companies in Hungary. Market Építő is based in Hungary and over the years has been involved in the construction of some of the most prestigious building investments in Hungary, and has had direct experience with McDonald’s through the construction of several McDonald’s restaurants and the first Ronald McDonald House in Hungary. Mr. Scheer is also the owner of real estate developer Unione Group and owner of the Hotel Clark.
The transaction is expected to close during the first quarter of 2019.
McDonald’s Hungarian business includes a total of 89 restaurants, of which more than 50% are currently franchised. Financial terms of the transaction are not being disclosed.
Under the DL structure, McDonald’s will transfer its ownership interest in its business in Hungary and grant a franchise to the DL to develop and operate the McDonald’s restaurants in this market. The DL partner will provide the capital necessary to support and grow the business.
Ian Borden, President, McDonald’s International Developmental Licensee Markets, said:
“We look forward to welcoming Sándor Scheer as our strategic partner in Hungary. As a successful entrepreneur, he has a clear understanding of how to successfully develop and grow businesses in the market. Importantly, Sándor shares our passion for the McDonald’s brand. With his strong track record in operations and development in the construction and hospitality industries, coupled with his customer- and people-centric mindset, we are confident that Sándor will accelerate the growth opportunities in Hungary for our business and for his people.”
Sándor Scheer said:
“I am excited to have the opportunity to join McDonald’s as Developmental Licensee for Hungary. I have previously had experience with McDonald’s through the construction of several McDonald’s restaurants and the first Ronald McDonald House in Hungary, which I found highly inspiring and motivating. With strong, customer-focused plans and capable market teams in place, it is a truly exciting time to join the McDonald’s family. I look forward to leveraging our collective knowledge and expertise to drive even greater success for the business and a more modern, convenient experience for our Hungarian customers.”
This announcement follows a rigorous evaluation and selection process. In November of 2015, McDonald’s committed to the long-term goal of becoming 95 percent franchised. McDonald’s has now refranchised more than 4,000 restaurants worldwide.
McDonald's is one of the the world's leading global foodservice retailer with over 37,000 locations in 120 countries. More than 90% of McDonald's restaurants worldwide are owned and operated by independent local business men and women.
McDonald’s has successfully utilized the DL ownership structure for more than 30 years in regions throughout the world including more than 80 individual countries with a portfolio of approximately 6,900 restaurants.
About Sándor Scheer
Sándor Scheer is founder, shareholder and CEO of Market Építő, one of the largest construction companies in Hungary and also the owner of real estate developer Unione Group and owner of the Hotel Clark. Over the years, Market Építő has been involved in the construction of some of the most prestigious building investments in Hungary, as well as the construction of several McDonald’s restaurants and the first Ronald McDonald House in the market.
Known for its customer-focused approach and commitment to quality, Market Építő has also received numerous awards over the years, including the Budapest Architectural Award, Workplace of the Year Award and most recently in 2018, the Company of the Year.
The company has also demonstrated a strong commitment to children’s and families’ well-being through regular support of the Bátor Tábor Foundation, as well as various sport associations, such as III. kerületi Torna és Vívó Egylet.