McDonald's profits inch ahead in tough year
SALES AT McDonald’s Ireland rose by 3.3 per cent to €209 million last year, boosted in part by the opening of four new restaurants during the year.
McDonald’s had 81 stores in Ireland at year end, 12 of which were run by the company and 69 by franchisees. The chain has opened two more restaurants this year.
Adrian Crean, managing director of McDonald’s Ireland, said it was a strong performance in a challenging market. “On a like for like basis we were slightly positive. This in the context of a tough eating-out market, which has seen high single digit declines across the sector generally.”
Figures for McDonald’s Restaurants of Ireland (MRI), which covers the 12 company-owned stores, show that sales dipped by 8 per cent during the year to €77.9 million, down from just under €85 million in 2010. Pre-tax profits were relatively flat on the year at €13.8 million, with cost of sales down 16 per cent at €22.3 million.
The figures for MRI include products sold in its 12 restaurants, as well as revenues generated by franchising activities.
The company refurbished 17 restaurants in Ireland during 2011 at a cost of €5 million, with plans to refurbish a similar number this year. The company continued to see double-digit growth in its coffee business last year, he said.
McDonald’s recently embarked on a high-profile advertising campaining, highlighting its links with the Irish agri-food sector. Some 10 per cent of Irish beef is now sold to McDonald’s restaurants.