A recently signed financial statement has revealed that the European parent company of McDonald's Irish operation injected €75 million into its business in Ireland to pay off its bank draft.
Accounts for McDonald's Restaurants of Ireland also indicate that the company has shifted its tax residency from the Republic of Ireland to the UK, as reported by The Irish Times.
McDonald's had 90 Irish outlets at the date of the accounts, which are for 2018, but were signed off on June 26 of this year.
A note to the statements indicates that the Irish unit of McDonald's declared a €20 million dividend to its European parent in October of last year, and the directors noted that "management and control" of the McDonald's Irish unit shifted from Ireland to the UK in January of 2018, which effectively changed its residency. As result, the Irish unit's tax bill for the year doubled to nearly €10 million.
Meanwhile, turnover decreased by 16% to €73.6 million; post-tax profits decreased by 16% to €1.3 million; the number of people employed by the Irish unit of McDonald's decreased from 675 to 342; and shareholders' funds on the balance sheet increased by more than fourfold to €102 million.
Dine-In Operations
McDonald's reopened 27 outlets in the Republic of Ireland for dine-in services on Wednesday July 15, and the fast food chain anticipates further expansion of its dine-in operations in the Republic in the coming weeks.
© 2020 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.
