Mega Macs beef up McDonald's Japan Q1 and forecasts
TOKYO, May 10 (Reuters) - McDonald's Japan (2702.Q), the nation's top fast-food chain, booked a huge jump in quarterly net profit and lifted its forecasts for this year, boosted by the popularity of "Mega Macs" and its new "McGriddles" breakfast menu.
McDonald's Holdings Co. Ltd. (Japan), just under half-owned by McDonald's Corp. (MCD.N) of the United States, said it now expects a net profit of between 4 billion and 6.5 billion yen
($33 million-$54 million) in 2007, compared with its previous estimate of 3 billion yen to 4.5 billion yen.
That compares with 3.6 billion yen made in 2006.
Also helped by store revamps, free coffee coupons and 24-hour service at more stores, particularly drive-through stores, McDonald's Japan net profit for January-March soared to 2.9 billion yen from 22 million yen.
The menu additions and store revamps were introduced after the company struggled with a drop in per-customer spending due to a lower price strategy launched in April 2005.
Mega Mac burgers -- four meat patties layered between three slices of bun with cheese and lettuce -- joined McDonald's menu from January for a limited period and made another brief cameo appearance after proving more popular than expected.
((Reporting by Edwina Gibbs; editing by Sophie Hardach; Reuters Messaging: edwina.gibbs.reuters.com@reuters.net; email edwina.gibbs.@reuters.com; +81 3 3432-8720))
($1=120.02 Yen) Keywords: MCDONALDS JAPAN RESULTS/
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