McDonald’s Japan posts first monthly sales rise since Jan 2014

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Published: September 9, 2015 3:48:57 PM

The Japanese unit of McDonald's Corp said on Wednesday its same-store sales in August rose for the first time since January 2014 helped by easy comparisons with the year before, when revelations of food-safety violations drove customers away.

The Japanese unit of McDonald’s Corp said on Wednesday its same-store sales in August rose for the first time since January 2014 helped by easy comparisons with the year before, when revelations of food-safety violations drove customers away.

August sales grew 2.8 percent compared with a year earlier, McDonald’s Holdings Co (Japan) Ltd said in a statement.

Sales at the fast-food chain have performed poorly especially since last July, when a major Chinese supplier of chicken was found using expired meat. Other incidents followed, including, most recently, the discovery of plastic shards in a frappe drink that injured a female customer.

McDonald’s Japan last month reported a net loss of 26.2 billion yen ($220 million) for the six months to end-June and forecast a full-year loss of 38 billion yen.

The company has pledged to turn its business around by renovating stores, cutting costs and bolstering safety oversight.

McDonald’s Japan said it was seeing some improvement thanks to its turnaround plan but it had yet to achieve a genuine recovery due to the lingering impact of safety concerns, adding that it would continue to make efforts to regain customers’ trust. ($1 = 119.0700 yen)

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