Who owns McDonald's in South Africa? Past and present owners
McDonald's is one of the world's most recognizable fast-food chains. Due to its top-notch services and products, it has expanded to various parts of the world, including South Africa. Who owns McDonald's in South Africa? Let us find out.
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The renowned American fast-food chain has expanded from its humble origins. The first McDonald's in South Africa was opened in November 1995, bringing its services closer to locals. Here is everything you need to know about its history and owners in the Rainbow Nation.
Who owns McDonald's in South Africa?
According to the company's website, it operates close to 400 restaurants in nine of South Africa's provinces. Initially, local entrepreneurs owned and operated individual restaurants under the franchise before Cyril Ramaphosa's entry.
McDonald's South Africa CEO Greg Solomon welcomed Ramaphosa's investment in the franchise in 2011. He said,
This transaction is a transaction of growth. It is a transaction of acceleration as well. What more could you ask for in a partnership?
You have one of the world’s best brands and one of South Africa’s most inspirational leaders coming together to give a truly ‘glocal’ flavour to this business. We want to double the business in the next four to five years.
Source: Original
Who is the owner of McDonald's in South Africa? The fast-food chain has had two owners, from Cyril Ramaphosa to MSA Holdings. It sells some of the most popular foods and snacks. Here is the fascinating journey of the company's ownership and performance.
Cyril Ramaphosa (2011-2016)
In March 2011, President Cyril Ramaphosa acquired a 20-year exclusive right to run McDonald's restaurants in South Africa. At that time, there were about 145 branches across the country.
The renowned politician and businessman promised to focus on satisfying the customers while developing and maximizing business opportunities through the franchise.
Source: Getty Images
Ramaphosa and McDonald's parted ways in 2016. According to News 24, he sold the franchise to focus on his position as deputy president and avoid conflict of interest.
MSA Holdings (2016-date)
The United Arab Emirates (UAE)- based company owns McDonald's in South Africa as of 2024. The entity acquired the franchise on 20 September 2016 at an undisclosed fee and continues to operate in the Rainbow Nation.
Who is MSA Holdings owner?
John Crosson founded the giant financial company headquartered in Buffalo, New York, United States of America. MB Financial Bank acquired it on 31 December 2015.
Source: Getty Images
Milestone under MSA Holdings
MSA Holdings has expanded the restaurant's business in South Africa, competing with KFC and Chicken Licken.
McDonald's employs over 12,000 people and serves over 8 million people in the country. Local South African suppliers reportedly produce over 80% of all food served in the restaurants.
McDonald's franchise cost in South Africa
How much does it cost to own a McDonald's in South Africa? Owning and running the famed fast-food restaurant in the Rainbow Nation will cost between $230,000 and $345,000, as per SME South Africa.
McDonald's background
The restaurant was established in 1940 in San Bernardino, California, USA, by two brothers, Maurice (Mac) and Richard McDonald's brothers. It began as a drive-through barbecue restaurant selling burgers and milkshakes.
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Maurice and Richard partnered with Ray Kroc in 1954 to expand the business. Kroc purchased the company in 1961 and opened more restaurants across the United States, converting it into a multi-million entity. Richard expressed no regrets about selling the franchise. He said,
Taxes were killing us. We weren't kids anymore. We had three homes and a garage full of Cadillacs, and we didn't owe a dime to anyone. … I have no regrets. Yachts on the Riviera were not my style at all.
What did Ray Kroc pay for McDonald's?
Ray Kroc paid Maurice and Richard $2.7 million to acquire the company in 1961. The company has grown, establishing over 36,000 restaurants in more than 100 countries.
Who is the CEO of all McDonald's?
Christopher John Kempczinski serves as the CEO of the franchise. He was appointed in November 2019.
Source: Getty Images
Who is the actual owner of McDonald's?
The food company is owned by various shareholders worldwide. The Vanguard Group, Inc. is the largest shareholder, with an 8.81% stake, as per Business Model Analyst. Here is a breakdown of the six key shareholders and their estimated shares.
| Company | Shares |
| The Vanguard Group, Inc. | 8.81% |
| SSgA Funds Management, Inc. | 4.74% |
| BlackRock Fund Advisors | 4.66% |
| Wellington Management Co. LLP | 2.37% |
| Geode Capital Management LLC | 1.85% |
| J.P. Morgan Investment Management | 1.65% |
Frequently asked questions
More than 80% of the food served in the SA fast-food restaurant is supplied and produced by local suppliers with the highest quality standards. Here are the frequently asked questions about McDonald's franchises in South Africa.
- Does Ramaphosa own McDonalds? The current South African president does not own the renowned fast-food chain restaurant. After running it for five years, he sold it to MSA Holdings in 2016.
- Who owns the McDonald's franchise in South Africa? UAE's MSA Holdings owns the famed fast-food restaurant.
- How many McDonald's is Cyril Ramaphosa owning? From 2011 to 2016, he owned around 145 restaurants. Ramaphosa reportedly does not own any fast-food franchises.
- Who is the CEO of McDonald's in South Africa? Greg Solomon is the CEO of the renowned fast-food chain restaurants in the Rainbow Nation.
- What city was the first McDonald's opened? The company opened its first store on 15 May 1940 in San Bernardino, California, USA.
- Who brought McDonald's to South Africa? The franchise entered the country in November 1995, but details of who brought it to SA remain unknown.
- Does KFC make more money than McDonald's in South Africa? SA Franchise Brands ranks KFC as the top fast-food store in South Africa. KFC holds 24.3% of the market sales in the country, while McDonalds represents 13%.
Understanding who owns McDonald's in South Africa and its management provides valuable insight into the fast-food industry. The American company is one of the top-selling food restaurants in the Rainbow Nation, with hundreds of stores.
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