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McDonald's Japan slides to H1 loss as food scandals weigh
August 12, 2015 / 6:23 AM / 2 years ago

McDonald's Japan slides to H1 loss as food scandals weigh

TOKYO, Aug 12 (Reuters) - The Japan unit of McDonald’s Corp’s said it slid deep into losses in the first six months of the year, as customers stayed away after a string of safety scandals and the fast-food chain booked store closure and other restructuring costs.

McDonald’s Holdings Co (Japan) Ltd on Wednesday reported a net loss of 26.22 billion yen ($210 million) in its January-June fiscal first half, compared with a 1.85 billion yen profit a year ago. Earlier this year it booked a net loss of 14.6 billion yen for the first three months of 2015.

The first-half loss report comes as McDonald’s Japan, led by Chief Executive Sarah Casanova, seeks to halt a streak of double-digit declines in monthly sales. The problems date back to July 2014, when a major Chinese supplier of chicken was accused of food-safety violations in a series of scares.

First-half revenue skidded 30 percent from the same period a year ago, the company said. For January-March, revenue fell 34 percent, it reported earlier this year.

$1 = 124.8400 yen Reporting by Joshua Hunt; Editing by Chris Gallagher and Kenneth Maxwell

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