McDonald's Holdings Co. (Japan) said Thursday that sales at its network of shops are likely to top ¥500 billion in the 2008 business year, making it the first restaurant chain in Japan to surpass half a trillion yen in annual sales.

The U.S. fast food chain opened its first shop in Japan in Tokyo's posh Ginza district in July 1971.

The tally covers sales at 3,754 shops, including outlets directly controlled by McDonald's and those at franchise shops.

McDonald's saw sales declines due to blunders in its pricing policy for hamburgers after the early 1990s burst of the bubble economy.

But sales have improved in recent years thanks to a rise in the number of McDonald's shops that operate around the clock, the introduction of new items and enhanced marketing of coffee.

The firm has been seeking to boost its fortunes under Eiko Harada, who became president in 2004.