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McProfits forecast to fall

http://www.japantimes.co.jp/cgi-bin/getarticle.pl5?nb20021207a4.htm

 

McDonald's Holdings Co. (Japan) Ltd., which operates 3,900 fast-food

outlets nationwide, said Friday it has slashed its earnings projections for

the business year through December, following a sharp drop in sales.

The firm has cut its group net profit forecast to 530 million yen, down

91.4 percent from an initial projection disclosed in August.

 

Its group sales projection was chopped 5.5 percent to 320.67 billion yen.

 

Last year's earnings figures are not readily comparable as the company

became a holding firm in July.

 

On an unconsolidated basis, the company posted a net profit of 10.19

billion yen on revenues of 361.67 billion yen in the previous business year.

 

Company officials attributed the embarrassing outlook to a sharp fall in

sales amid fierce competition in the restaurant sector. On a same-store

basis, sales between July and November were down 8.9 percent from the same

period last year.

 

The firm said it is aiming to boost profitability next year by reducing the

number of new outlets it opens to around half of this year's 183, as well

as introducing new food items.

 

The Japan Times: Dec. 7, 2002

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