McDonald’s Irish arm serves up 13% profit increase

Pre-tax profits at the Irish arm of fast food giant, McDonald’s last year increased by 13% to €15.8m.

New accounts show that McDonald’s Restaurants of Ireland Ltd recorded the jump in profits as revenues increased 2% to €86.6m in the 12 months to the end of December.

The company paid out a dividend of €118m to its US parent last year.

Earlier this year, McDonald’s Ireland scaled back its head office functions and confirmed that the post of chief executive would not be filled after former boss Adrian Crean stepped down in June.

The number of McDonald’s owned Irish stores last year fell by three to nine as the company sold the outlets to franchisees.

The number of franchised stores here last year increased from 77 to 82.

The Irish division’s performance last year was broadly in line with expectations, representing an improvement over the prior year.

The increase in revenue was due to new stores opening and like-for-like growth from existing company-operated and franchised stores.

The company’s operating profits last year increased by 14% to €15.7m, while the average number of employees fell from 941 to 866.

Staff costs at the company last year increased from €19.22m to €19.95m. Directors’ pay rose from €269,000 to €402,000.

In the accounts, the company said it anticipated continued expansion of operations in Ireland.

The company’s lease costs last year dipped slightly from €12.85m to €12.81m. The dividend payout last year contributed to accumulated profits reducing from €120m to €13.7m.

The Irish company’s cash pile reduced from €34.9m to €5.9m. Post-tax profits for the year amounted to €11.59m after corporate tax of €4.22m was paid.

The operating profit takes account of non-cash deprecation costs of €4.63m, a €296,000 impairment loss on tangible assets and €920,000 amortisation costs.

McDonald’s is the world’s leading global foodservice retailer with more than 36,000 locations in over 100 countries.

Approximately 85% of McDonald’s restaurants worldwide are owned and operated by independent local business people.

Each year, McDonald’s —which opened its first Irish outlet on Dublin’s Grafton Street in 1977 — purchases 40,000 tonnes of Irish beef. Figures indicate that if McDonald’s was an export destination for Irish beef exports, it would be the fourth largest.

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