Covid restrictions take huge bite out of McDonald's Irish profits and revenues

Numbers directly employed by McDonald's here last year reduced from 170 to 147 and staff costs declined by 20% from €4.3m to €3.5m

Pre-tax profits at the Irish arm of fast food giant McDonald’s last year tumbled by 70% to €6m.

That is according to new accounts for McDonald’s Restaurants of Ireland Ltd, which show that profits declined sharply as Covid-19 resulted in a €20.7m revenue hit for the company.

Revenues decreased by 30% from €69m to €48.2m.

During the period, the McDonald's operation here was made up of 93 franchised stores and two owner-operated outlets, representing no change from 2019.

The company’s operating profits declined by 69% to €6.35m and a non-cash property impairment of €347,000 contributed to profits reducing further.

In the accounts, the company’s directors state that revenue and profit reduced due to the Covid-19 pandemic which resulted in restricted trading with all outlets shut from March 23, 2020, and gradually re-opening as lockdown measures eased.

Despite the sharp drop in profits and revenues for 2020, the directors said that “the company anticipates continued expansion of its operations in the Republic of Ireland”.

The company paid no dividend last year after paying out a dividend of €20m in 2019.

Numbers directly employed by McDonald's here last year reduced from 170 to 147 and staff costs declined by 20% from €4.3m to €3.5m.