McDonald's Japan shares rise to a 16-year high
It has surpassed the gains of its US-based parent.
According to Business Times, the stock of McDonald's Holdings Co (Japan) has surged to its highest since its initial public offering in 2001 as a turnaround takes hold, which has lifted profits beyond levels before the company's two-year crisis.
The McDonald's Corp has been focused on closing unprofitable stores and revamping existing ones, and has reported 20 straight months of same-store sales gains. It is reeling in more customers with items such as the Hawaiian "loco moco" burgers, and advertising tie-ins including Pokemon-themed McFlurrys.
"They had lost the confidence of customers, but managed to appeal to them again," said Seiichiro Samejima, a Tokyo-based analyst at Ichiyoshi Research Institute. He said changes such as prominently displaying details about food items, more modern storefronts and smarter advertising all contributed to the comeback.
Shares of McDonald's Japan fell 0.7 per cent to 4,585 yen on Tuesday, after closing at the highest level since July 2001 on Aug. 3. The stock is up 50 per cent for the year, far outstripping a 27 per cent gain for McDonald's Corp., though the parent reached an all-time high last month. Japan's benchmark Topix index has climbed less than 8 per cent in 2017.
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Photo credit: Nikkei Asian Review
