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Jim Skinner, McDonald's CEO

(OAK BROOK, IL) -- McDonald's Japan, a 50-percent-owned affiliate of  McDonald's Corp. (NYSE: MCD), will be closing about 430 restaurants over the next 12 to 18 months while the Oak Brook, IL-based fast-food company reviews its operations in Japan.

The affiliate, McDonald's Holdings Co. (Japan), has 3,700 stores.

At the same time that it was announcing the closings, the company also is opening 90 new restaurants and refurbishing 200 others in Japan, according to DailyFinance.com columnist Jonathan Berr.

Because of the decision to close the estimated 430 sites, the company will take after-tax impairment  charges of $40 million to $50 million in the first half of 2010

"These (restaurant-closing) actions are designed to enhance the customer experience, overall profitability and returns of the market," says McDonald's CEO Jim Skinner in a prepared statement of the company's overall performance.

The world's largest fast-food restaurant chain made the announcement while disclosing global comparable sales increased 2.6 percent in January at locations in Asia/Pacific, the Middle East and Africa.  Sales in Europe were up 4.3 percent but sales in the U.S. were down 0.7 percent.

"McDonald's continues to deliver great tasting, high quality food at an outstanding value to the growing number of customers we serve around the world every day," says Skinner.

"As we raise the bar on our menu, convenience and value offerings, I am confident that we will exceed our customers' expectations again in 2010."

U.S. comparable sales were down slightly in January, still outpacing the overall quick-service restaurant industry, Skinner points out. 

In Europe, comparable sales rose 4.3% for the month fueled by France, the U.K. and many other markets, partly offset by Germany.

"Throughout Europe, affordable menu choices, seasonal and fourth tier menu options and a contemporary restaurant environment make McDonald's an easy choice for customers," Skinner says.

January comparable sales in Asia/Pacific, Middle East and Africa (APMEA) were up 4.3% led by performance in Japan and Australia, partly offset by a difficult comparison in China and other markets due to the timing of Chinese New Year, Skinner says. 

Systemwide sales rose 9.1%, or 4.3% in constant currencies, for the month.

McDonald's tentatively plans to release February sales on March 8, 2010.

Skinner said McDonald's operates more than 32,000 local restaurants in more than 100 countries.  About 80% of McDonald's restaurants worldwide are owned and operated by franchisees

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