The McDonald’s licensee for northern and eastern India has raised its planned investment to $80 million over the next two and a half years, to open more restaurants and expand its digital services, The Economic Times reported.
The business, Connaught Plaza Restaurants, runs the McDonald’s chain in northern and eastern India. MMG Group bought it in 2020 from Chicago-based McDonald’s Corp. The company previously said it would invest close to $100 million over four years.
Sanjeev Agrawal, chairman of McDonald’s India (North & East), told the newspaper: “This will be our highest investment in a two-year period.” He said the owners have put $175 million into the business so far, and that group companies will fund the new spending.
Competition and costs. The report named Devyani International, which operates KFC restaurants in India, and Burger King as rivals. Agrawal said costs for food, packaging, oil and transportation have risen because of the crisis in the Middle East (known in India as West Asia), and that profit will stay under pressure. The chain will raise prices slightly on select items but plans to stay in the value segment.
Growth plan. The business expects revenue of $210 million at current exchange rates in the fiscal year ending March 2027, up from $178 million a year earlier, with an operating margin before interest, taxes, depreciation and amortization of 12%, according to filings cited in the report. It runs more than 320 restaurants and expects to pass 500 by 2028, a mix of drive-through sites, highway locations and sites at government-run fuel stations.
Why this matters. McDonald’s Corp. is leaning on markets such as India while sales in its home market stay slow. At its September 2026 investor day, global chief Chris Kempczinski announced an $8.5 billion support package for franchisees and said customer traffic in developed western markets would stay flat while inflation remains high, the report said. The India business operates as a developmental licensee, and Agrawal said its own owners will fund the expansion. For American consumer brands, that is one way to grow in India with third party local capital and local operating control.
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