McDonald's Holdings Co. (Japan) said Friday it posted a net loss of 7.12 billion yen for 2003, with weak sales and heavy restructuring costs forcing the company into its second consecutive losing year.

Yet the nation's largest fast-food restaurant chain said it is confident of delivering a profit this year, pointing to monthly same-store sales that have stayed above year-earlier levels since November.

For the business year ended in December, the company's operating profit fell 28 percent to 2.84 billion yen on sales of 299.82 billion yen, down 6.5 percent.

Systemwide sales, or sales at all McDonald's stores, came to 386.7 billion yen, down from 402.7 billion yen a year ago.

During the year, the chain opened 64 outlets and closed 182, bringing the total to 3,773 stores.

After posting its first loss in nearly 30 years in 2002, the hamburger chain tried to reverse its flagging sales by introducing new menus and revamping old stores.

But same-store sales, or turnover at stores open for at least one year, dropped 4.4 percent from the previous year.

As part of its efforts to focus on its core hamburger business, the company carried out restructuring that included withdrawal from its Pret A Manger sandwich business.

It booked a one-time loss of 3.55 billion yen for early retirement packages and 6.25 billion yen to end a so-called management services agreement with Fujita & Co., the company owned by Den Fujita, the retired founder of the McDonald's franchise in Japan.

McDonald's Holdings (Japan) President Yasuyuki Yagi said the worst is over for the chain after two disappointing years. Management has taken heart from January's same-store sales, which are up 2.7 percent from a year ago.

He said the company will introduce new regular hamburgers, one each for the first and second halves of this year.

For 2004, the company projects a 2.87 billion yen net profit on revenue of 305.06 billion yen. It expects the same-store sales to rise 3.5 percent.

The company officially announced the same day that it has named Eiko Harada, former chief of Apple Japan Inc., as its next chief executive officer. The nomination is subject to approval at the company's shareholders' meeting in March.

CEO Pat Donahue will retain the post of chairman, overseeing overall strategy.

Harada, 55, an engineering major in university, rose through the ranks as a marketing expert at Apple, the maker of Macintosh computers. He now faces the task of revitalizing a different kind of Mac.

Asked about his lack of experience in the restaurant industry, Harada said the essence of running a business is the same no matter what you sell.

"Personal computers are also consumer products," he said. "The challenge is how to deliver to new customers. The hamburger business is all the same."

Donahue chimed in, saying that Harada "is clearly an expert in consumer marketing. That's really what we are all about," adding: "He is going to work at restaurants and learn how to make hamburgers."