May 07, 2015
McDonald’s Holdings Co. (Japan) said Friday it logged a group net loss of ¥14.594 billion in the January-March quarter, its first in the period since the fast-food chain listed its shares in 2001.
The loss chiefly reflected lingering safety concerns after pieces of plastic and other foreign objects were found in McDonald’s Japan products, including chicken nuggets.
“Sales and profit declined significantly” year on year, reflecting “the impact of food safety- and supply-related issues,” the company said in a statement.
Sales plunged 34.4 percent from the previous year to ¥40.874 billion, the steepest drop since the burger chain went public. On a same-store basis, sales dived 32.3 percent, setting a similar record.
In April, however, same-store sales fell 21.5 percent, versus 29.3 percent the previous month.
For the quarter, McDonald’s Japan suffered an operating loss of ¥9.962 billion, against a profit of ¥2.402 billion the year before.
In the statement, the company cited “a continuously challenging business environment due in large part to the prolonged impact” of the safety and supply issues.
The company aims to increase sales in the July-September quarter by making further efforts to regain customer trust and closing unprofitable outlets.
“Going forward, regaining customer confidence will remain our number one priority,” it said.
Source: THE JAPAN TIMES