McDonald's to Reduce Stake in Japan Unit to 35 Pct
Chicago, July 28 (Jiji Press)--McDonald's Corp. said Tuesday that it will sell some of its holdings of shares in its Japanese unit, McDonald's Holdings Co. (Japan) <2702> Ltd.
The U.S. fast food giant will lower its stake from some 50 pct to around 35 pct, McDonald's Chief Financial Officer Kevin Ozan said during a telephone briefing on the company's April-June earnings results.
The decision comes "as a result of the strong performance of the McDonald's Japan business over the past few years" and the U.S. firm's "confidence in the local management team," Ozan said, adding, "We believe it's the right time to gradually reduce our ownership stake."
The CFO said that the plan to maintain a 35 pct stake demonstrates the company's commitment to its Japanese business, while noting that the sale "will take some time because of the low trading volume of McDonald's Japan shares."
The U.S. company's net profit dropped 68 pct year on year in the second quarter of this year, and sales were down 30 pct, due to the novel coronavirus epidemic forcing most stores to limit operations to drive-through or takeout services.
[Copyright The Jiji Press, Ltd.]