McDonald’s Japan, the Japanese unit of the American fast food giant McDonald’s (MCD) dampened investors’ appetites after it cut its profit outlook for the year and announced plans to shutter some locations.
The company forecast lowered its earnings outlook for 2013 to $48 million, down 57% from prior estimates. It also revealed that it will shut down 74 restaurants in Japan. Sales in Japan have sunk for five consecutive months, Bloomberg notes.
McDonald’s has a roughly 50% stake in McDonald’s Japan. Despite the news MCD stock rose modestly in Friday trading in New York. MCD stock is up more than 5% since the beginning of the year.
In Japan, McDonald’s has seen the number of customers visiting McDonald’s restaurants fall below its expectations.
Yesterday MCD stock slipped after the company admitted that its Mighty Wings had failed to gain traction with U.S. consumers, leaving it with large stocks of the frozen wings.