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McDonald’s Japan posts fivefold profit increase

TOKYO New menu items, extended operating hours and store remodelings boosted the net profits of McDonald’s Holdings Co. (Japan) Ltd. more than fivefold for 2007, to the equivalent of $73 million, or ¥7.82 billion.

Net profit for 2006 was ¥1.55 billion.

The operator or franchisor of 3,746 McDonald’s units, or about 12 percent of the chain, is 50-percent owned by brand parent McDonald’s Corp.

The Tokyo-based company reported record sales of about $3.73 billion for the year, an 11.1-percent increase, and a 10-percent jump in same-store sales.

At least 1,312 McDonald’s units in Japan are now open 24 hours. The remodelings included the addition of drive-thrus.

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