McDonald’s Japan Expects First Net Loss in Nearly 30 Years

    Industry News | December 20, 2002

    McDonald's Holdings Co. Ltd. (Japan) predicted Friday a group net loss of 2.3 billion yen ($19.33 million) for the year 2002.

    The news comes a scant two weeks after the company revised profit estimates downward by more than 90 percent to a net profit of 530 million yen ($4.4 million). The company said the loss is exacerbated by a special charge of 4.9 billion yen ($40.65 million) in 2002 from a planned closure of 176 outlets in the next year.

    This will be the first net loss for the 50%-owned unit of U.S. fast-food giant McDonald's Corp (NYSE:MCD) since 1973.

    McDonald’s Japan has been struggling despite lowering hamburger prices to the equivalent of 50-cents in an effort to recover from the mad cow scare. Sales have fallen in each of the last three months.

    News and information presented in this release has not been corroborated by WTWH Media LLC.