McDonald’s supersize profits up 32% as Irish prove they’re still lovin’ it

FAST food remains very much the flavour of the day in Ireland with McDonald’s reporting a 32% rise in profits for last year.

Newly filed accounts for McDonald’s Restaurants of Ireland show pre-tax profits for the year to the end of December 2007 increasing from €11.2 million to €15.7m.

Turnover for 2007 jumped to €92.4m from €85m while operating profit from continuing operations rose from €12.1m to €15.8m.

The company said it operated 21 stores at the year end while all other 50 stores are franchised.

“The principal risks and uncertainties faced by the company are changes in local business and economic condition and our ability to anticipate and respond to trends or other factors that affect the informal eating out market and our competitive position therein,” the company said in the accounts.

In line with previous years no dividend was paid out to shareholders. The accounts also note that no political donations were made.

The company did not say if the sales growth was achieved from its existing restaurants or by the opening of new outlets.

The number of employees working for the company increased to 1,315 from 1,258.

The increase in employment meant staff costs increased to €23.1m from €21.3m.

Around €20.9m was spent by McDonald’s on wages, while €1.8m was spent on social welfare costs.

Directors’ remuneration increased to €713,000 from €509,000.

A spokesman for the company said between new stores and refurbishments, McDonald’s is reinvesting €10m-12m in 2008 and are currently working on future openings in Sligo, Portlaoise, Maynooth, Dundalk and Ennis.

Meanwhile things are also looking up for McDonald’s on a group level.

It recently announced a third-quarter profit jump of 11%, showing fast-food sales have been holding up well despite the economic downturn.