Fashion
McDonald’s has reportedly invited bids for a “significant stake” in its McDonald’s Japan unit.
The Wall Street Journal has quoted “people familiar with the matter” saying the company is looking for buyers for up to 33 per cent of the shares, from its nearly 50 per cent stake in the listed Japanese company.
The report said initial bids were due to be lodged this week and that a number of private-equity firms are considering the opportunity.
Last week McDonald’s released terms of its sale of 80 per cent of its China and Hong Kong business, giving 20-year rights to the brand to state-backed Citic Ltd and private equity company Carlyle Group.
The beleaguered Japanese business last February reported its first increase in customer numbers in nearly three years after a tumultuous period in which sales plummeted and the store network was heavily rationalised.
Internal company figures showed footfall at stores open for more than one year rose by more than 10 per cent Japan-wide. Better yet, same-store sales rose by as much as 30 per cent, according to a report by Reuters.
McDonald’s Holdings Co (Japan) has projected a net profit of about 1 billion yen (US$8.47 million) for the year to December 2016 – which would mark its first time out of the red in three years since a food safety scandal relating to expired chicken hit the brand in 2014. In January 2015 sales plunged 38.6 per cent, customer ranks depleted by 28.5 per cent.
In April 2015 the company unveiled a plan to cull its restaurant network and revamp remaining stores after a US$319 million loss.
It also revised its menu, adding salads which has clearly drawn customers back to restaurants.
