McDonald’s Japan announces store closures

Fast-food chain McDonald’s has cut full-year profit forecast by more than half for its Japan unit, a…

Fast-food chain McDonald’s has cut full-year profit forecast by more than half for its Japan unit, and also announced closure of 74 outlets in the country.

The store closure announcement came as the company's Japan unit posted one of its biggest losses since 14 August 2013.

Sales dropped for five straight months through November, while net income is expected to be JPY5bn ($48m) in the year ending December, which is 57% less than its previous projection.

The restaurant chain also cut its forecast for operating profit by 43% to JPY11.5bn ($18m).

Expenses for outlet closures and store renovations aimed at luring more consumers booked this year, led to the profit forecast cut, McDonald's Japan said.

McDonald's operates close to 3,170 stores in Japan, as of October 2013.