Profits up to €42m at McDonald's Irish unit
McDonald's Restaurants of Ireland generates its revenue from the chain's franchisees in Ireland, who between them operate about 95 outlets.
The parent firm divested its last directly-operated store to a franchisee in February 2022, so all the McDonald's restaurants in Ireland are now operated by franchisees. The chain opened its first outlet in Ireland in 1977, on Dublin's Grafton Street.
The latest set of accounts for McDonald's Restaurants of Ireland show that its turnover dipped 1pc to €84.4m. Its administrative expenses fell by €8.5m last year to €22.5m. That was also a result of a reduction in accumulated depreciation due to a reassessment of its tangible fixed assets.
The company did not pay a dividend last year, leaving it with accumulated profits of €34.6m at the end of 2024 and shareholder funds of €114.2m. It had paid a dividend of €51m.
Last November, McDonald's announced that it would create 1,000 jobs in Ireland over the next four years as part of a €40m expansion plan. McDonald's directly employed 8,880 people in Ireland as of 2023 and its business resulted in indirect employment of 1,605 jobs, according to a report compiled for the group last year. McDonald's is one of the biggest buyers of beef in Ireland.
In March, McDonald's received planning permission for an additional two outlets in Co Tipperary and Co Wexford, despite objections to the plans.
The group is facing more competition in the quick service restaurant sector here. Rivals including Wendy's, Popeye's and Taco Bell are all muscling into the Irish market. Wendy's is planning to open 10 restaurants in Ireland within the next two years in a partnership with Corrib Oil.
In 2022, Wendy's – which is headquartered in Dublin, Ohio – said it was actively seeking franchisees in Ireland as it continued its international expansion.
Taco Bell is opening its first restaurant in Ireland this year, in Cork. It has teamed up with Applegreen to launch the outlets.
The single largest McDonald's franchisee in Ireland is Amir Afsar, who emigrated from Iran about 20 years ago, first to the UK and then to Ireland. He operates about a dozen outlets in Dublin, including the chain's outlet on Grafton Street.
The company behind his restaurants generated revenue of €52.7m in 2023 and made a pre-tax profit of €4.7m that year. It had accumulated profits of €19.6m at the end of 2023.
Last year, one of Ireland's most successful McDonald's franchisees, Gerry Hayden, sold his business for €20m to another operator. Mr Hayden operated five McDonald's restaurants in Dublin and was a franchisee for almost 30 years.
Another major McDonald's franchisee in Ireland is Elaine Sterio. She also kickstarted her career at McDonald's, getting her first job at the chain at its Grafton St store in 1989. She began working full-time for the group when she finished her studies.
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