McDonald’s Holdings Co. (Japan) on Wednesday reported a group net loss of ¥29.28 billion for January-September, the worst result for the nine-month period since its stock listing in 2001.
Attributed in part to a series of incidents involving inedible items found in its food, the figure is far greater than the pervious year’s net loss of ¥7.54 billion. The larger net loss also reflects costs related to outlet closures.
Group sales plunged 20.1 percent to ¥137.55 billion, the lowest since the listing.
The hamburger chain’s recurring loss stood at ¥22.3 billion, greater than the ¥576 million loss a year before, chiefly due to financial support given to franchise outlets.
Still, Yutaka Masuda, a senior finance official at the company, stressed that its earnings are recovering although the situation remains difficult. He noted that the size of the year-on-year drop in same-store sales in July-September shrank to 4 percent from 32.3 percent in the January-March period. Same-store sales are expected to increase in 2016, Masuda added.
The company kept its consolidated earnings forecasts for the full year to December unchanged, projecting a record net loss of ¥38 billion. Sales are expected to come in at ¥200 billion, with the recurring loss at ¥31 billion.