Pre-tax profits at the Irish arm of US fast food giant McDonald’s last year increased by 17% to €42.43m.
New accounts for McDonald’s Restaurants of Ireland Ltd show that pre-tax profits decreased as revenues dipped by 1% from €85.65m to €84.39m.
The company operated no McDonald’s outlets during the year and generates its revenues from amounts charged to franchisees with the number of franchisee restaurants remaining at 95 in 2024.
The fast food brand is currently expanding its Irish operations and has planning applications for new restaurants for counties Tipperary, Waterford, Westmeath and Carrigaline in Cork.
The plans for the Waterford Retail Park at Butterstown, Co Waterford, Mullingar in Westmeath and Thurles in Co Tipperary are currently before An Bord Pleanála after the plans were stalled by sole objectors lodging appeals in each case.
Planning permission was recently granted for a new McDonalds at New Ross in Co Wexford.
The company paid no dividend last year after paying out a dividend of €51m in 2023.
The McDonalds 95 strong branch network here is operated by 19 franchisees.
Separate accounts recently lodged by McDonald’s charity, Ronald McDonald House Charities (RMHC)m provide a good indicator of the total 2024 revenues generated by McDonalds restaurants on the island of Ireland.
McDonalds operators here donate 0.04pc of their revenues which amounted to €254,283 last year. The contribution translates to an estimated €635m in McDonald’s sales – north and south – in 2024.
In a recent interview, one McDonald’s franchisee, Jim Ronayne, said that he was aiming that his six McDonalds in Cork and Tipperary will generate revenues of €32m this year.
Mr Ronayne operates McDonalds at Douglas, Mallow along with others at Commons Road, Blackpool and Musgrave Park in Cork city and one outlet in Clonmel, Co Tipperary.
He said that last year, the restaurants generated €30m in revenues and said that its Commons Road outlet generates 64% of revenues from its drive-thru operation.
Mr Ronayne’s business currently employs 475.
The McDonald’s owned franchise operation here last year enjoyed the jump in profits as administrative expenses last year reduced by €8.54m.
The decrease in administrative expenses reduced last year as 2023 costs included site closure and technology costs that did not re-occur in 2024.
The reduction in administrative expenses included the company benefiting from non-cash depreciation charges reducing from €5.97m to €1.72m.
Operating profits at McDonald’s Restaurants of Ireland increased by 18% from €34m to €40.29m.
With the switch of the owner-operated Dublin Airport outlet in 2022 to a franchised operation, numbers employed reduced from 18 to 17 in 2024 as staff costs totalled €1.48m.
The firm recorded a post tax profit of €29.33m after incurring a corporation tax charge of €13.09m.
The company’s lease costs remained static at €14.6m.
At the end of December 2024, the firm had shareholder funds of €114.26m that included accumulated profits of €34.58m. The company’s share premium remained static at €75m.
Its cash funds increased from €45.58 to €52.03m.
Reporting by Gordon Deegan
