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.
The accounts show that 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, which represented no change from 2019.
The company said its operating profits declined by 69% to €6.35m and a non-cash property impairment of €347,000 contributed to profits reducing further.
The directors stated 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 lock-down measures eased.
Despite the sharp drop in profits and revenues for 2020, the directors stated that “the company anticipates continued expansion of its operations in the Republic of Ireland”.
Staff costs declined by 20% from €4.3m to €3.5m during the year.
The profit takes account of non-cash depreciation costs of €3.5m and amortisation costs of €747,000.
The profit also takes account of lease costs of €15m.
The company recorded post tax profits of €5.53m after paying corporation tax of €468,000.
At the end of December last, shareholder funds totalled €103.45m.
The company said its cash funds reduced from €18.9m to €13.3m.
The company paid no dividend last year after paying out a dividend of €20m in 2019.