Obesity concerns have done nothing to dent profits at McDonald's Irish operations.
Results filed at the Companies Office show that operating profits at the US fast-food giant's Irish business jumped by a third in 2003 to €11.1 million.
The strong performance of McDonald's Restaurants of Ireland Ltd was driven by tight cost control with sales rising just 3.8 per cent to €71.34 million in the 12-month period.
The cost of sales in the period fell from €21.18 million to fractionally below €21 million. Staff costs were reduced by 5.7 per cent despite a 3.4 per cent rise in the average number of people employed during the year.
The company, which was set up in 1987, operated 18 McDonald's outlets around the State at the end of 2003. It also had 50 franchised restaurants.
Despite the growing worldwide focus on obesity and the links being made with fast-food diets, McDonald's has seen its performance recover from a decline in the early part of the decade.
Last year, the chain updated its menu offering a range of salads, grilled sandwiches, fruit and yoghurt. However, it insists this is aimed more at encouraging more women to use the restaurants rather than any concern over obesity.
Turnover growth in Ireland was broadly in line with the 4 per cent recorded across Europe, although that figure was held back by disappointing performances in Britain and Germany. In the US, revenues were 15 per cent stronger in 2003.
At the pre-tax level, the Irish operation recorded a profit of €9.67 million in 2003, 35 per cent ahead of the €6.78 million a year earlier.
The tax charge was offset by rebates of €441,000 from previous years boosting the profit after tax to €9.18 million.
At year end, company reserves stood at €41.15 million, up from €31.96 million at the end of 2002. The company has again decided against paying a dividend.
The company says it is confident of continuing expansion in Ireland where its number of outlets per head of population is seen as comparatively low. Managing director Mr Marcus Hewson is on record as saying that McDonald's would expect to open around four new outlets every year for the foreseeable future.
While figures for 2004 will not be available until towards the end of the year, quarterly data from the parent company indicate that the group has continued to record improved performance in each successive quarter.
