Operating profits at the Irish arm of fast food giant McDonald's increased more than three fold to €19.63m in 2021.
New accounts show that McDonald's Restaurants of Ireland Ltd benefited from the easing of Covid-19 restrictions in 2021 as revenues surged by 39% or €18.92m from €48.21m to €67.13m.
The firm's revenues for 2021 recovered to such an extent to €67.13m that they were almost on a par with pre-Covid revenues of €69m in 2019.
The operating profit equates to an average weekly operating profit of €377,519 and the bumper 2021 performance has allowed the company to pay out combined dividends of €45m across 2022 and 2021.
The firm paid out a dividend of €25m on November 30 and this followed a dividend payout of €20m in 2021.
The company is eyeing expanding the business here with the directors stating that "the company anticipates further expansion of its operations in the Republic of Ireland".
The McDonald’s business here is now entirely based on franchised restaurants.
This followed the last owner-operated McDonald's closing permanently at Dublin Airport on February 28, 2022.
The number of franchised restaurants at the end of December 2021 totalled 94.
The directors state that revenues increased by 39% and operating profits increased "due to the recovery from the Covid-19 pandemic".
They state that the large increase in gross margin and operating profit "is reflective of costs not increasing to the same degree as turnover".
The also directors state that throughout the second and third Covid-19 lockdowns in November 2020 and January 2021 "we were able to continue sales through our delivery, drive-thru and take away channels".
"Indoor dining re-opened in July 2021. These operational changes allowed us to continue operating these channels under all but the most severe lockdown situations and with the success of the vaccine rollout across the UK and Ireland, we do not expect further closures of any sales channels," they add.
The company's pre-tax profits increased by 180% from €6m in 2020 to €16.78m in 2021.
Its pre-tax profits were lower than operating profits of €19.63m due mainly to a non-cash impairment on tangible assets of €2.85m.
The firm recorded a post tax profit of €15.12m after paying corporation tax of €1.65m.
Numbers of staff employed increased from 147 to 163 as staff costs rose from €3.52m to €3.93m.
The operating profit takes account of combined non-cash depreciation and amortisation costs of €3.6m.
The company's lease costs increased from €15m to €15.32m.
At the end of December 2021, the firm had shareholder funds of €98.57m, which included accumulated profits of €18.89m.
The company said its cash funds increased sharply from €13.3m to €35.2m.
McDonald's sources its beef from 12,000 Irish farmers and established its first Irish outlet in 1977.
Reporting by Gordon Deegan
