McDonald’s turns in a healthy Irish performance with pre-tax profit rise

THE Irish arm of fast food giant McDonald’s last year increased its pre-tax profits to €14.8 million in spite of an 8% drop in revenues to €85m.

Documents just filed with the Companies Office show that McDonald’s Restaurants of Ireland Ltd’s pre-tax profits increased by 1.7% from €14.6m to €14.8m to the end of December last.

The accounts show the company’s revenues dropped by 8% from €92.9m to €85.2m during the 12-month period.

The results for the fast food company’s Irish operations are in line with McDonald’s global performance last year where revenues dropped to $22.7 billion (€16.2bn) with pre-tax profits increasing marginally to $6.4bn (€4.6bn).

The accounts confirm the Irish subsidiary paid a €12m dividend to its US parent last year.

The accounts show the company last year operated 14 of its own stores and 64 franchised outlets in Ireland, serving an estimated 150,000 people each day.

The directors state the group “anticipates continued expansion of its operations in Ireland”.

At the end of December last, the company had accumulated profits of €85.8m.

The filings show the company’s cost of sales last year decreased by 10% from €26.3m to €23.7m, while its administrative expenses last year dropped 10.4% from €52.6m to €47m.

The accounts show the company’s operating profits last year increased marginally from €14.2m to €14.4m.

The fast food operator’s workforce in Ireland last year decreased by 18% or 218 from 1,175 to 957 with staff costs reducing 10% from €21m to €18.7m.

The directors’ remuneration dropped from €596,000 to €517,000.

The accounts show the company made €5.7m in additions to its land and buildings, giving the company’s land and building a value of €64.8m at the end of December last.

“The principal risks and uncertainties faced by the company are changes in local business and economic conditions 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.

“Our ability in executing initiatives to address these conditions, trends and other factors continues to be integral to our business performance.”

The first McDonald’s opened in Ireland at Dublin’s Grafton Street in 1977 and today worldwide, the company operates 32,478 restaurants in 117 countries.