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McDonald's has a Japan problem

  • McDonald's Japan reports that it expects to see net income in Japan for the calendar year come in at $48M to fall well-below the consensus mark of analysts calling for $91.5M.
  • The restaurant operator, which is 50%-owned by McDonald's (MCD), plans to close 74 stores in the nation due to underwhelming performance. November marked the fifth straight month of falling sales compared to the year-ago period.
Comments (12)
  • magi48
    , contributor
    Comments (162) | Send Message
     
    McDonald's continues to perform poorly everywhere. When you have to close 74 stores for under performance, that is a death toll.
    19 Dec 2013, 08:46 PM Reply Like
  • northengr
    , contributor
    Comments (2) | Send Message
     
    in Asia I observe McD customers are quite young or are ex-pats. Since there are a dearth of both in Japan this sales problem would fit. Japan is aging out and McD may sell coffee to us oldsters in the US, but in the Asia I observe they draw in only asians in their 20's.
    19 Dec 2013, 09:09 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2795) | Send Message
     
    I had my biyearly McD meal a few weeks ago, there was minimal nutrition in the chicken burger, pork mcnuggets and fries (the ketchup in cn has more MSG than tomatoes)

     

    the elderly ought to be wiser, though I see grand parents taking the kids to eat after school to KFC.
    20 Dec 2013, 07:28 AM Reply Like
  • First1billion
    , contributor
    Comments (79) | Send Message
     
    McD sells poison, in my opinion.
    20 Dec 2013, 08:20 AM Reply Like
  • Ron Myers
    , contributor
    Comments (254) | Send Message
     
    This is the future of Japan. They had to make a number of price increases due to the weakening of the Yen. What hasn't increased is wages of their customers meaning McD's is no longer an insanely cheap option like it once was over there. And oh by the way, consumption tax increase next year.

     

    Shorting any Japanese company with even modest domestic exposure is probably the way to go. I give them three years for it to blow up.
    19 Dec 2013, 09:29 PM Reply Like
  • TAS
    , contributor
    Comments (1983) | Send Message
     
    Pumping currency and manipulating artificial growth is a one way ticket to a monumental flop.

     

    We in the U.S. are in the same boat, albeit with a more resilient private sector and younger population.
    19 Dec 2013, 10:48 PM Reply Like
  • 8555321
    , contributor
    Comments (6) | Send Message
     
    HS what's happening?
    20 Dec 2013, 01:04 AM Reply Like
  • maybenot
    , contributor
    Comments (3362) | Send Message
     
    Good.

     

    Hopefully MCD's price will go down so I can buy more.

     

    Long MCD
    20 Dec 2013, 01:12 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11015) | Send Message
     
    MCD is fighting demands for wage increases/unionization on one end and the fact that all other burger joints are offering more for the same price than they do. A name can only hold up so long, the greed for profits has decimated their franchisees and bankrupted any sense of value for the price you pay for small burgers with nothing much else. If it weren't for the fries they'd be nothing but a real estate holding company by now.
    20 Dec 2013, 01:30 AM Reply Like
  • The Fox
    , contributor
    Comments (623) | Send Message
     
    Moon,

     

    Get real. You lost all credibility with your last sentence. French fries are all that is keeping MCD sustainable. Wow.
    20 Dec 2013, 07:12 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2795) | Send Message
     
    the burgers are not earning money money earned is from such accessories such as fries and drinks.
    20 Dec 2013, 07:25 AM Reply Like
  • Sir Duke
    , contributor
    Comments (115) | Send Message
     
    Moon you are fried my man. Fast food is terrible for you but MCD is a global dominator.
    26 Dec 2013, 07:47 PM Reply Like
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