McDonald’s sheds 2,000 UK jobs as profit almost doubles
Profit at the UK arm of McDonald’s almost doubled in 2024 as it shed more than 2,000 jobs, it has been revealed.
The US fast food giant has posted a pre-tax profit of £120m for its latest financial year, up from the £66.3m it reported in 2023.
That figure though was down from the £170.8m it achieved in 2022.
McDonald’s operating profit also surged from £10.7m to £75.5m in 2024 having been cut from the £165.4m it achieved in 2022.
New accounts filed with Companies House have also revealed that McDonald’s turnover fell in 2024 from £1.83bn to £1.82bn.
From its owned restaurants, McDonald’s turnover fell from £942m to £904.9m but increased from £893.5m to £916.8m from its licensees.
The results also show that the average monthly number of people McDonald’s employed in the UK in 2024 fell from 26,384 to 24,375.
McDonald’s said that these employees have been transferred to its franchises as part of a wider long term strategy and have not been lost.
That long-term goal is to have 95 per cent of its locations to be franchises.
A statement signed off by the board said: “The year on year movement in operating profit is predominantly driven by savings in administrative expenses offset the investment and intangibles impairment of £41m.
“Additionally, this was further impacted by continued inflationary pressures impacting food, paper and utility costs on the company operated estate.”
McDonald’s issued a dividend of £83m to its US parent for the year after not paying out one in 2023.
The company added: “The level of business and the period end financial position remain satisfactory in spite of the ongoing challenges presented by the inflationary environment, both for the company and the wider McDonald’s system and the directors are confident of being able to develop the business further in the future.”
McDonald’s faces growing competition
The results for the UK arm of McDonald’s come after City PM reported in May that KFC is planning create more than 7,000 jobs in the UK and Ireland over the next five years and open a further 500 restaurants by 2035.
The £1.5bn investment would see £466m go towards opening new locations focusing on building flagship sites and drive-thrus in “key locations” such as Ireland and North West England.
Part of that figure will also be spent on upgrading more than 200 existing KFC restaurants – 20 per cent of the brand’s estate.
KFC aded that its plans to create more than 7,000 jobs over the next five years will see it invest £583m.
The brand also said that it will spend £404m to “strengthen KFC’s long-standing relationships with its suppliers and help businesses across the UK&I continue to grow”.
At the start of 2025, fast-growing chains Wingstop and Popeyes each announced major plans to expand further across the UK and create thousands of jobs.
Popeyes outlined proposals to almost double its footprint in the UK with the opening of more than 45 restaurants.
The company said it expects to create around 2,500 jobs and it will target sales of more than £200m in 2025.
At the same time, the UK franchise of chicken chain Wingstop announced plans to open at least 20 new sites in the UK this year, creating hundreds of jobs.
The plans came a month after Wingstop’s UK arm was taken over by a US private equity firm, for more than £400m.