TOKYO: McDonald’s Holdings Company (Japan) Ltd. on Thursday posted record consolidated operating and net profits for 2023 as average customer spending improved following price hikes.

The company’s net profit for the year through December last year rose 26.2 pct to 25.1 billion yen, and operating profit grew 20.9 pct to 40.8 billion yen. The company expects profit growth also for 2024.

Group sales in 2023 climbed 8.4 pct to 381.9 billion yen, with per-customer spending up 8.5 pct on a same-store basis mainly thanks to price hikes carried out in January that year.

The company’s profitability was boosted by its efforts to streamline its ingredient procurement and distribution systems.

It aims to boost its earnings further this year by increasing customer satisfaction through the use of its smartphone app.

In an online press conference, President Tamotsu Hiiro said the company plans to raise the base pay of regular employees at its core unit, McDonald’s Co. (Japan), by 4 pct through a pay-scale increase and a regular raise.

The starting salary for new university graduates will increase by 10,000 yen to 270,000 yen.

For part-time workers, “appropriate hourly wages will be set in consideration of the employment environment,” Hiiro said.

JIJI Press