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McDonald's Japan to close 400+ stores
February 8, 2010
McDonald's Japan, a 50 percent-owned affiliate of McDonald's Corp., has announced plans to close approximately 430 restaurants over the next 12-18 months in conjunction with the strategic review of the market's real estate portfolio. These actions are designed to enhance the customer experience, overall profitability and returns of the market.
As a result of these closures, McDonald's Corp. announced that it expects to record after tax impairment charges totaling approximately $40 million to $50 million, primarily in the first half of the year.
The company also reported its January global comparable sales, which increased 2.6 percent for the month. Performance by segment was as follows:
- United States, down 0.7 percent
- Europe, up 4.3 percent
- Asia/Pacific, Middle East and Africa up 4.3 percent
"McDonald's continues to deliver great tasting, high quality food at an outstanding value to the growing number of customers we serve around the world every day," said McDonald's CEO Jim Skinner. "As we raise the bar on our menu, convenience and value offerings, I am confident that we will exceed our customers' expectations again in 2010."
U.S. comparable sales were down slightly in January, still outpacing the overall quick-service restaurant industry. McDonald's U.S. continued to satisfy customers' appetite for value, variety and convenience with appealing new additions — the compelling Breakfast Dollar Menu, the portable Mac Snack Wrap and free Wi-Fi.
Last month, Skinner told investors and analysts during the company's quarterly earnings call that early January sales in the U.S. market were down as much as 3 percent due to Arctic weather gripping much of the country during the first two weeks of the month.
In Europe, comparable sales were fueled by France, the United Kingdom and many other markets, partly offset by Germany. Throughout Europe, initiatives include affordable menu choices, seasonal and fourth-tier menu options and a contemporary restaurant environment.
January comparable sales in APMEA were led by performance in Japan and Australia, partly offset by a difficult comparison in China and other markets due to the timing of Chinese New Year. Everyday affordability, core menu favorites, breakfast and convenience initiatives continue to differentiate the McDonald's experience in APMEA.
Systemwide sales rose 9.1 percent, or 4.3 percent in constant currencies, for the month.
McDonald's tentatively plans to release February sales March 8.
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