The group’s total turnover, which comprises sales from company owned restaurants as well as percentage rate and fees from franchisees, was £1.821bn for the year ended 31 December 2024, down from £1.835bn the year before, with the group noting that its high street estate ‘continues to be impacted by challenging retail footfall’.
Gross profit fell from £826m to £825m over the period, while operating profit jumped to £76m from £11m the year before.
The group said the year-on-year movement in operating profit was predominantly driven by savings in administrative expenses, which offset investment and intangibles impairment of £41m.
This was further impacted by continued inflationary pressures on food, paper, and utility costs across the company-operated estate, the group added.
Profit after tax for the year amounted to £79m, up from £11m in 2023.
Writing in the report, McDonald’s UK director Mark Kiernan said the level of business and year-end financial position remained ‘satisfactory, in spite of the ongoing challenges presented by the inflationary environment, both for the company and the wider McDonald’s system.
He added that while the company operates in a ‘highly competitive environment’, the group’s directors are ‘confident about being able to develop the business further in the future’.
These latest results come amid a tough year for the McDonald’s UK business.
Back in January, more than 700 McDonald’s junior crew members in the UK joined a legal action against the fast food giant following allegations of widespread harassment across its estate.
It followed an investigation into workplace conditions at McDonald’s by the BBC in July 2023 that gathered more than 100 allegations of sexual and racial abuse as well as harassment, homophobia and bullying.
At the time, McDonald’s UK boss Alistair Macrow pledged to ‘root out’ any behaviour or conduct that fell below the ‘high standards McDonald’s expects of its staff’. However, further allegations have been published by the BBC this year.
McDonald’s UK addressed the controversy directly in its results through a statement that committed to fully investigating every complaint, with proven breaches of the code of conduct to be met with ‘the most severe measures we can legally impose’.
The group also said it is recruiting a head of safeguarding to lead education and create a safe working environment.
It has further established a new investigation handling unit, supported by three external law firms, and appointed an external consultancy to review processes and policies and audit their implementation.
An employee advisory panel comprised of restaurant staff from each region has also been set up, and a ‘red flag’ campaign launched to provide staff with ‘an easily recognisable way to call out unacceptable behaviour’.
Headcount across McDonald’s UK’s directly owned business fell to 24,375 from 26,384 over the year with all reductions from restaurants and operations rather than head office.