McDonald's China partners with Disney

"The objectives of Happy Meals are not profit-driven. We are trying to nurture a conversation with families who have children aged between three to nine years old on how to eat healthily and how to have a good diet habit," Cheung said.

The CEO said the fast-food chain opened 423 new restaurants in China last year. This year the number is expected to equal last year or slightly exceed it. Nearly half of the new restaurants are located in third- or fourth-tier cities, said Cheung.

"In China our focus is to raise our brand awareness in lower tier cities by developing star food items from each category," she said.