Why McDonald's Is Forced To 'Ration Out' French Fries In Japan

McDonald's Holdings Co. Japan, a subsidiary of McDonald's Corp MCD, is facing a french-fries shortage in Japan, primarily due to the coronavirus crisis and the flooding of a port in Vancouver. 

What Happened: McDonald's would ration its fries out in Japan, with the conglomerate slashing its medium and large size offering until the new year, according to a report from Bloomberg.

The company commented on its drastic plan of action, stating it wants "to ensure that as many customers as possible will have continued access to our french fries."

McDonald's is also trying to work out alternative flight routes is and working closely with both its suppliers and importers to mitigate the effects of the shortage on its 2,900 outlets in Japan, as per Bloomberg. The company also stated that the current issues won't hamper the supply of its hash browns. 

Earlier this week, McDonald's settled a lawsuit for $33.5 million with former Oakland Athletics baseball player Herbert Washington, who claimed the company restricted his franchise locations to predominantly low volume Black neighborhoods and then forced him to downgrade the size of his locations unfairly.

Price Action: McDonald's shares 0.4% higher at $262.85 in the pre-market session on Monday.