Business

McDonald’s sales hit record high

Kyodo News

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.