McDonald’s Holdings Co. Japan Ltd. MDNDF will raise its menu prices for the second time this year.
What Happened: The fast-food chain is set to hike the price of about 60% of its products by 10 to 30 yen ($0.07-$0.21) from Sept. 30, reported Bloomberg, citing a company statement.
The move comes in the wake of Japan witnessing its highest inflation in decades coupled with a weakening currency.
The company, which operates stores for Chicago-based McDonald’s Corp. MCD, said it has been affected by “a recent surge in raw material prices, rising labor, logistics and energy costs, as well as rapid exchange rate fluctuations,” the report said.
Indeed, the yen has depreciated by about 24% against the dollar since the beginning of the year.
See Also: Where McDonald's Stands With Analysts
The last time the company raised its prices in Japan was in March this year. It hiked the price of nearly 20% of its Japan menu items, citing factors such as the rising cost of beef and wheat, the report said.
Price Action: McDonald's Holdings Company Japan's shares closed 0.1% higher in Tokyo on Monday and are down about 1.4% year-to-date.
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