McDonald’s sales rise

McDONALD’s Restaurants Ireland cut 343 people from its workforce as sales remained static at E68.7 million, the latest set of accounts show.

The company operates the food giant's Irish franchise . Accounts for the year ending December 2002 show sales for the year grew slightly to E68.7m from E68.6m when the outbreak of foot and mouth had a negative impact on the sale of beef products.

Pre-tax profits fell in 2002 to E6.7m from E6.9m a year earlier.

The accounts show the average pay of the 1,090 people employed was E13,206. However, McDonald's had 2,433 people on its books in 2001.

The company had a gross profit of E47.55m, took a depreciation charge of E3.71m (2.98m) and transferred E5.4m to reserves after deducting taxation of E1.37m (1.8m). The fall in tax payable is a result of a change in rate of tax applicable to the company, falling from 16% to 12%. The company pays 25% on rental income.

The company has tangible assets of E66.8m (64.4) while it has debts of E29.4 million, on which it paid interest of E1.55m (1.83m).

The company's turnover represents goods sold in company owned restaurants as well as revenue generated from franchising, excluding value added tax.

Other McDonald Corporation owned operations in Ireland are responsible for annual exports in excess of E74 million to McDonald's in Europe and the US.

These exports include: cheese slices to McDonald's European markets E46 million; raw material exported to Britain for the production of hamburgers E11 million; cream and milk Jiggers exported to Britain and jigger ingredients exported to McDonald's US supplier E1.2 million.

McDonald's Corp reported fourth-quarter global net income of $125.7 million this week, after new menu offerings such as white-meat Chicken McNuggets spurred the biggest sales gain in eight years.