The Japanese unit of US fastfood giant McDonald’s has said that it expects to record its first net loss since 1973.
This is the second time in two weeks that McDonald’s Japan has cut its full-year forecast as it brings forward costs to close 176 outlets next year.
The announcement by Japan’s top fastfood chain follows an announcement by its parent company earlier this week that McDonald’s Corp would post its first-ever quarterly loss as sales at its fastfood outlets deteriorate.
McDonald’s Japan, which is 50% owned by McDonald’s Corp, cut its group net forecast for the year to December to a net loss of ¥2.33bn (US$19.1m).
Two weeks ago the company forecast a net profit of ¥530m, down 91.4% from a year earlier, as McDonald’s continues to suffer the after effects of an outbreak of BSE in Japan.
The latest forecast revision reflects a decision to book a special loss of ¥4.9bn to close a record 176 loss-making stores in 2003, reported Reuters.