McDonald's Corp.'s Japan affiliate reported its first full-year loss in 11 years as the fast-food chain faced fallout from food scandals and after labor disputes at U.S. ports forced it to ration french fries.
The net loss for 2014 was ¥21.8 billion ($186 million), compared with net income of ¥5.1 billion the previous year, McDonald's Holdings Co. (Japan) said in a statement to the Tokyo Stock Exchange on Thursday. The average of three analyst estimates compiled by Bloomberg was a ¥17.5 billion loss. The company last posted an annual loss in 2003, according to data compiled by Bloomberg.
The Japanese chain has faced difficulties after customers complained of finding foreign objects in its food, including a human tooth, prompting the company to announce preventive measures including store cleanings and inspections. McDonald's Japan on Thursday refrained from providing an earnings outlook for 2015, saying it wasn't able to make a reasonable forecast.