Alexandra is one of several "promising" South Island sites fast food chain McDonald's is investigating.
When contacted by the Otago Daily Times yesterday about rumours the chain planned to establish a restaurant in the town, McDonald's national communications manager Kate Porter said it was one of many areas in the South Island being considered by the company.
"As yet, there's nothing I can confirm with you," she said.
During the past two years, a site on the corner of Centennial Ave and Brandon St, occupied by Mackies Garden Centre, has frequently been rumoured to be the favoured site for a fast food restaurant.
Business co-owner Barry Mackie said yesterday his property was signed up to "some company I've never heard of".
There were many conditions on the deal and it would be months before he would know if it was going ahead.
Ms Porter said McDonald's announced earlier this year it planned to spend $100 million expanding over the next two years.
"Certainly, we're looking at more South Island sites."
Alexandra was a "promising" location, she said.