updated - August 14, 2020 Friday EDT
The famous fast food chain McDonald's Holdings Co Ltd in Japan projected a net loss about 17 billion yen for this year. This is the first in more than a decade, following a scandal on food safety which tremendously affected the sales of the company.
The statement went worse for the organization, which has about 49.9% of McDonald's Japan, and has been battling internationally with low sales.
"Consumers are having doubts on the food quality, and I take full responsibility for that," said the company's chief executive official Sarah Casanova on her press briefing. She also projected a loss of more than 9 billion yen until end of December this year.
Experiencing a stiff competition from local convenience shops, McDonald's Japan is struggling from low demand even the food safety scandal occurred.
The organization got back its yearly income target following the food scandal last July, however before that, it had projected a profit of over 11billion yen and net income of 6 billion yen for 2014.
In previous year, the company said there was a 60% decrease in net income about 5 billion yen.
The food scandal, which also slapped other international food industries like Yum Brands Inc, gave a decrease of 25% to the company's sales last August. The lowest figure since McDonald's Japan started last 2001. Sales decreased more up to 16.6% in September for the 8th consecutive month of the year.
The shares of the company ended 2.5% priced at 2,638 yen.
The famous fast food company released a statement on the previous month's condition. Its international sale went down as 3.7% in August. Fighting internal stumble, stiff competition and changes on customers' preference, McDonald's Corp. released a warning in September that the food scare will definitely affect its income.
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