McDonald’s Japan Needs More than a Happy Meal: New CEO
It looks like McDonald’s (NYSE:MCD) Japan division needs something a little stronger than a happy meal.
Bloomberg reported Tuesday that McDonald’s Japan is continuing to suffer the consequences of a weakening yen and a subsequent price hike on some of its menu items. The increased prices are driving customers away, and after releasing a first-half sales report in early August showing that the chain’s operating profits have dropped more than 40 percent and its sales have fallen 11.4 percent, McDonald’s is ready to rework its strategy in Japan and switch up management.
Eiko Harada has served as president, chairman, and CEO of McDonald’s Japan — 49 percent owned by McDonald’s Corp. — since 2005, but now, his position will be taken over by Sarah Casanova, a Canadian who has worked with the fast food giant for 22 years.
Casanova has not yet released an agenda or goals for her term, but Harada maintains that the “new managerial talent” will be good for McDonald’s, a franchise that has been suffering in Japan as other chains and convenience stores cut their prices or increase their prepared food offerings to combat the country’s weakening currency.