McDonald’s halves net profit outlook

Kyodo

McDonald’s Holdings Co. (Japan) said Thursday it more than halved its group net profit projection for 2013 as its sales and customer traffic proved far below its initial estimates.

It now expects ¥5 billion in net profit against an initial estimate of ¥11.7 billion, and also revised its operating profit projection to ¥11.5 billion from the initial ¥20 billion.

It revised downward its sales projection for the year to ¥260 billion from the initial ¥265 billion.

The company also blamed the revisions on the booking of a range of expenses to refurbish existing shops, increase the number of staff and close shops.