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09.08.02 . author unknown . Dow Jones Newswires . Japan
McDonald's Japan Posts Drop in Profit Amid Mad-Cow Fears
TOKYO -- McDonald's Holdings Co. (Japan) Ltd. Friday reported grim results for the first half ended June 30, citing lingering consumer fears over mad-cow disease.
Parent pretax profit for the first six-month period tumbled 81% to 2.46 billion yen ($20.3 million) on a 14% decline in sales to 158.33 billion yen.
The popular hamburger chain adopted a holding company structure July 1. To combat the tough business environment, McDonald's Japan cut the price of its hamburgers to 59 yen from 80 yen on Aug. 5, reversing a partial price increase implemented six months ago.
In February, the firm "standardized" the price of its hamburgers at 80 yen, which increased the price on weekdays from 65 yen but cut the price on weekends from 130 yen.
McDonald's Holdings Japan cut its parent pretax
profit outlook for the full business
year through Dec. 31 to 11 billion yen from
22.69 billion yen. The parent sales
outlook was cut to 339.42 billion yen from
365.02 billion yen.