Fri 30th Sep 2022 - Exclusive: McDonald’s UK turnover hits £1.5bn to exceed pre-pandemic levels Exclusive – McDonald’s UK turnover hits £1.5bn to exceed pre-pandemic levels, returns to profit, paid £29m to buy out largest UK franchisee: McDonald’s UK has reported like-for-like sales in 2022 are up on last year as the business reported turnover exceeded pre-pandemic levels. Turnover increased to £1,500,141,000 compared with £970,266,000 the year before. The figure also exceeded the £1,402,777,000 reported in 2019 – the last full year before the pandemic. Turnover from owned restaurants was £688,277,000 (2021: £434,954,000) with £811,864,000 (2021: £535,312,000) generated from services provided to franchise outlets. The business saw a pre-tax profit of £163,295,000 compared with a loss of £23,350,000 the previous year (2019: profit of £405,994,000). The accounts also revealed the business paid £29,150,000 to buy out the remaining stake in its 50/50 joint venture with Appt Corporation, which was its largest UK franchisee, in March this year. The business, owned by Atul Pathak, was founded in 2003 and operated 43 sites, which stretch from north to west London as well as into Berkshire. Latest accounts available for Appt Corporation show the business turned over £97,204,000 in 2020 with Ebitda of £8,490,000 and pre-tax profit of £2,136,914. McDonald’s UK stated: “Like-for-like sales in 2022 have so far grown since 2021 due to the strength of the brand and the success of delivery and drive-thru services. Consumer behaviour impacts the group's turnover and the variability of commodity prices and other costs impacts profitability. The group's gross profit has increased to £800m (2020: £331m) and it made an operating profit of £141m (2020: operating loss of £32m). The high street estate continues to be impacted by declining retail footfall, but we have mitigated this risk through investment in the customer experience across our estate, including our high street stores, drive-thru stores and home delivery platform. Drive-thru stores and delivery performed well throughout 2021. The group gained control of Appt Corporation on 1 September 2021, a company previously treated as a joint venture. On 4 March 2022 the group acquired the remaining 50% of the issued shares in Appt Corporation.” A dividend of £325m was paid. (2020: zero). The highest paid director received remuneration of £885,000 (2021: £527,000). The business operates about 1,350 restaurants in the UK and Ireland.