By Gordon Deegan
Pre-tax profits at the Irish arm of fast food giant, McDonald's last year increased by 7% to €16.95m in spite of a €3.57m restructuring charge.
New accounts show that McDonald's Restaurants of Ireland Ltd recorded the jump in profits as revenues increased 2% to €88.12m in the 12 months to the end of December.
The accounts also reveal that the company paid out a dividend of €13.5m last year and this followed a dividend payout of €118m in 2016.
Last year, the firm scaled back its head office functions here and confirmed that the post of CEO would not be filled after former CEO, Adrian Crean stepped down in June.
The directors state that the restructuring costs totalled €3.57m in respect of the integration of the company’s support functions with those of the UK.
The accounts disclose that two directors resigned in 2017, Mr Crean and David Morgan.
The accounts confirm that €166,000 was paid out to directors in compensation for loss of office.
The accounts also confirm that from January 1st 2018 the corporate tax residency of the firm migrated from the Republic of Ireland to the UK.
The mix of stores owned and operated by McDonald's changed last year with the number of McDonald owned stores last year reducing from nine to five while the number of franchised stores last year increasing from 82 to 86.
The directors state that the Irish company’s performance for the financial year is broadly in line with expectations, representing an improvement over the prior year.
The directors added that revenues increased by 2% during the year due to new stores opening in 2017 and last year and like for like growth from existing company-operated and franchised stores net of the turnover impact of disposing of four company-operated stores to franchisees.
The directors state that they anticipate continued expansion of its operations in Ireland.
Staff costs at the company last year decreased from €19.22m to €16.39m as the number of employees reduced from 866 to 675. Directors’ pay last year increased from €402,000 to €672,000.
The operating profit last year takes account of non-cash depreciation costs of €4.5m and €992,000 amortisation costs.
The company’s lease costs last year cost increased from €12.8m to €13.67m.
The dividend payout last year contributed to accumulated profits reducing from €13.7m to €12.5m. The company’s cash pile increased from €5.9m to €8.2m.
The company last year recorded post-tax profits of €12.2m after paying corporate tax of €4.67m.
Each year, McDonald's purchases 40,000 tonnes of Irish beef - if McDonald's was an export destination for Irish beef exports, it would be the fourth largest.
McDonald's established its first Irish outlet in 1977.