McDonald's Holdings Co. (Japan) said Friday its group net profit in 2005 plunged 98.3 percent from the previous year to 60 million yen, despite higher sales, due to an extraordinary loss arising from the cost of correcting insufficient payments to its employees.
The fast-food chain's 2005 sales totaled 325.66 billion yen, up 5.7 percent.
McDonald's campaign of price cuts, featuring 100 yen cheeseburgers and coffee, helped bring about a 12.3 percent increase in customers and 3.3 percent rise in sales, on a same-store basis, the company said.
Labor Standards Inspection officials advised McDonald's Holdings last August over shortfalls in its employee compensation and ordered it to correct the problem.