McDonald’s Sales in Japan Rise on Cuts

Japanese poured into McDonald’s restaurants in record numbers last week after it slashed hamburger prices to their lowest ever, persuading one in four people to eat there.

McDonald’s Holdings Co., Japan’s biggest fast-food chain, reported a 15% sales jump in the week ending Aug. 9, signaling a possible turnaround for the vendor of low-priced meals that has been devastated by the effect of an outbreak of mad cow disease and the unwillingness of Japanese to spend during a recession.

The unit of U.S. fast-food giant McDonald’s Corp. said sales for the week stood at $77.89 million from a record 30.1 million customers, surpassing the 27.78 million hamburger fans who ate at its stores in April 2001. “The results demonstrate that one-quarter of the population visited our restaurants,” it said.

The number of customers rose 25% from the previous week after it slashed prices Aug. 5, selling plain hamburgers for 50 cents, down from 67 cents, and cheeseburgers for 66 cents instead of $1--their lowest prices ever in Japan.

The price cuts were to counter a sales slump since last September when an outbreak of mad cow disease in Japan led many to shun its 3,800 outlets despite assurances that it uses only imported beef.