Supermac’s sees 25% drop in revenue amid ‘hammering’ in city centres

Fast-food firm having ‘decent year’ in 2021, ‘will come through pandemic well’, chief says

A Supermac’s in Kinnegad in 2019. Drive-through and home delivery did ‘exceptionally well’ during parts of last year, Supermac’s chief executive said. Photograph: Alan Betson

A Supermac’s in Kinnegad in 2019. Drive-through and home delivery did ‘exceptionally well’ during parts of last year, Supermac’s chief executive said. Photograph: Alan Betson

 

The Supermac’s group saw a 25 per cent drop in its revenue last year with its city-centre outlets most impacted by the Covid-19 pandemic.

According to its latest accounts, Supermac’s (Holdings) Ltd saw its pretax profit decline by 6.7 per cent from €24.58 million to €22.93 million in 2020.

The decline in profit followed revenue decreasing by a quarter from €189.4 million to €141.5 million.

Commenting on the figures, Supermac’s chief executive, Pat McDonagh, said the drop in revenue “was not a bad result for the conditions that prevailed in 2020 with the pandemic”.

He said drive-through and home delivery had done “exceptionally well” during parts of last year.

The Supermac’s group is made up of 110 Supermac’s outlets and six hotels.

‘Hammered’

Mr McDonagh said that when the firm reopened after the first lockdown, the fast-food business “wasn’t impacted, with the exception of city-centre sites that got hammered”.

He said he was “happy enough” with 2020, that the firm “is having a decent year in 2021” and “will come through the Covid-19 pandemic well”.

“The first six months of this year have been challenging but the second part of the year has been quite good overall.”

The pretax profit for 2020 is skewed as it includes employment wage subsidy scheme and Covid restriction support scheme payments in ‘other operating income’ which rose from €2.4 million to €8.2 million last year.

The profit also takes account of non-cash depreciation costs of €5.75 million.

The Supermac’s group employs 1,800 people and Mr McDonagh said the group hoped to have three or four “substantial openings” in 2022.

At the end of last year, the group had accumulated profit of €163 million while its cash funds increased from €24.5 million to €34.4 million.

“When things come back to normal we are in a good position to move forward. It is still quite a profitable business,” Mr McDonagh said. “There will be opportunity and a lot of change of ownership will take place in the industry over the next number of years.”