McDonald’s Japan forecasts profit in three years

Tokyo: McDonald’s Japan business forecast that it will return to full-year profitability for the first time in three years, as the company deploys new measures in an attempt to win back customers after being hit by a series of food crises. Net income will probably be ¥1 billion ($8.7 million) for the year ending December 2016, the fast-food chain said in a statement on Tuesday. The company has said in April it would shut stores and cut jobs to cope with the scandals including foreign objects found in its food.
"We’ve seen a considerable reversal of momentum in the later half of 2015 and the momentum continues to grow," president Sarah Casanova said at a post-earnings press conference in Tokyo on Tuesday, adding she’s planning to accelerate the company’s recovery. "There’s a possibility to grow profitability more. It’s difficult to put a timeline on it."
The fast food chain, which last month introduced the salty-sweet ‘McChoco Potato’ fries to Japanese customers, saw its first increase in customers since April 2013, as visitors to its stores open at least a year rose 17 per cent in January and sales increased 35 per cent. The improvement comes as its parent ponders selling a stake in the Japan unit, as Oak Brook, Illinois-based McDonald’s reviews its ownership strategies worldwide.
Casanova said it’s premature to comment on the parent’s stake sale and added the company will complete store closures in the first half of this year. It plans to shut 30 to 60 outlets this year, it said in a statement on Tuesday.
Net loss for 2015 was ¥34.7 billion in the year ended December, compared to a loss of ¥21.8 billion the previous year, McDonald’s (Japan) said on Tuesday. The Tokyo-based company predicted a full-year loss of ¥38 billion last April.