Mcdonald’s UK profit slashed by over £100m
Profit at Mcdonald’s UK restaurants was slashed by more than £100m in 2023 despite its turnover taking a big stride towards the £2bn mark.
The US fast food giant has reported a pre-tax profit of £66.3m for its UK operations, down from the £170.8m it achieved in 2022.
Mcdonald’s operating profit was cut from £165.4m to just £10.7m.
However, newly-filed accounts with Companies House also show its turnover increased from £1.59bn to £1.83bn over the same period.
Its turnover from its owned restaurants rose from £703m to £942m while its earnings from licencees dipped slightly from £894.3m to £893.5m.
Mcdonald’s said its performance had been hit by inflation impacting its food, paper and utility costs.
Mcdonald’s ‘confident’ for the future
A statement signed off by the board said: “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.
“The directors are confident of being able to develop the business further in the future.
“Total sales in 2024 have so far grown since 2023 due to the strength of the brand and the success of delivery and drive-thru services.”
The results come after City PM reported that “bold” price rises at a Mcdonald’s franchise empire helped sales jump by more than £15m during its latest financial year.
Run by Andrew Gibson, AG Restaurants operates 27 sites in Glasgow, employs more than 3,000 people and is one of the largest in the UK.
The business has reported a turnover of £135.2m for 2023, up from £120.1m in 2022.
Its pre-tax profit also grew from £1.8m to £2.3m over the same period.
The Mcdonald’s franchise said that it planned to counter any potential negative impact from its price rises with a “strong marketing calendar”.