McDonald’s Holdings Co. (Japan) reported Tuesday a group net loss of ¥34.70 billion for 2015, the largest loss since it listed in Japan in 2001.
It marked the second straight year of loss, hurt by slumping sales and the costs of closing loss-making restaurants. The figure was much bigger than a ¥21.84 billion group net loss in 2014.
Consolidated operating losses came to ¥25.23 billion, as sales dropped 14.8 percent to ¥189.47 billion.
For the current year through Dec. 31, the unit is projecting a group net profit of ¥1 billion. Operating profit is estimated to reach ¥3.3 billion on revenue of ¥220 billion, up 16.1 percent.
Speaking at a news conference in Tokyo, President Sarah Casanova pledged to “complete our turnaround,” adding that there is “substantial work” to do in 2016 and beyond.
A series of food safety scandals hurt demand for McDonald’s products, prompting it to take restructuring steps such as closing unprofitable restaurants nationwide.
McDonald’s Japan saw a 15.6 percent year-on-year drop in sales to ¥376.55 billion on a same-store basis.
McDonald’s has been exploring selling part of its stake in the Japanese arm, whose delay in catering to diversifying consumer tastes has been blamed partly on McDonald’s strong influence on management policy.