McDonald’s Holdings Co. (Japan) said Wednesday its consolidated sales in the year that ended last December rose 2.9 percent over the previous year to an all-time high of ¥406.37 billion as the company policy of focusing on its hamburger business paid off.
Net profit surged 58.5 percent to ¥12.39 billion due to the settlement of a lawsuit with Toys “R” Us-Japan Ltd. and capital gains from the sale of the shareholdings in the toy company. Pretax profit jumped 16.8 percent to ¥18.24 billion.
Toys “R” Us-Japan was founded in 1989 by its U.S. parent and McDonald’s Japan. Ever since, Toys “R” Us-Japan had been in agreement that the fast-food chain will give it business advice for a fee until 2018.
But Toys “R” Us-Japan tried to terminate the contract in 2006, upon which McDonald’s Japan sued the company.
The end of the litigation brought in a settlement worth ¥1.38 billion and McDonald’s Japan sold its entire equity stake in the toy retailer, reaping capital gains of ¥2.55 billion.