McDonald’s UK sees FY pre-tax profit more than halve after impact of inflationary pressures: McDonald’s UK saw its pre-tax profit decline from £170,875,000 in 2022 to £66,327,000 last year, due to inflationary pressures impacting food, paper and utility costs on the company’s operated estate. Franchise right fees increased from £491,141,000 to £543,587,000 in the year to 31 December 2023 while turnover was up from £1,597,442,000 to £1,835,618,000. Of this, £942,084,000 came from owned restaurants (2022: £703,072,000) while £893,534,000 came from licensees (2022: £894,370,000). No dividends were paid (2022: £75m). Mark Kiernan, senior vice-president, chief financial officer, said: “The company operates in a highly competitive market. The company's gross profit has decreased to £826m (2022: £861m) and it made an operating profit of £11m (2022: £165m). The year-on-year movement in operating profit is predominantly driven by the investment and intangibles impairment of £48m. Additionally, this was further impacted by inflationary pressures impacting food, paper and utility costs on the company-operated estate. The level of business and the period end financial position remain satisfactory, in spite of the ongoing challenges presented by the inflationary environment, both for the company and the wider McDonald's system, and the directors are confident of being able to develop the business further in the future. Total sales in 2024 have so far grown since 2023 due to the strength of the brand and the success of delivery and drive-thru services.” At year-end, the company had net assets of £789m (2022: £773m) and a cash at bank balance of £16m (2022: £23m). During the year, the company purchased the remaining 50% share capital of the joint venture, South Coast Foods for a consideration of £22.5m. South Coast Foods was founded in 2008 by Grant Copper with the purchase of 14 restaurants. It subsequently grew to 24 restaurants along the south coast including a delivery kitchen in Fratton, near Portsmouth. McDonald’s UK features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 994 companies. McDonald’s turnover of £1,835,618,000 is the seventh highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

St Austell CEO – the beloved pub is an institution we cannot afford to lose: Kevin Georgel, chief executive of St Austell Brewery, has said the time has come for the government to “finally recognise the invaluable role pubs play in our communities and act decisively to support them”. Ahead of the Budget, Georgel said that it has the potential to “enable and encourage us to continue to play a pivotal role in what we are told is the primary objective of this government – getting the UK economy into growth or place further disproportionate and punitive taxation on this vibrant and dynamic sector”. He said: “Like the rest of the country the hospitality sector is on tenterhooks about the Budget at the end of the month. It’s going to be a pivotal moment for the UK economy but particularly for our sector, with many holding on to the hope of some much-needed optimism and belief. In recent weeks, alarming speculation of legislative and fiscal changes – despite the government’s welcomed five-point plan for pubs promoted in its election manifesto – have hit the headlines; potential increases in alcohol duty, no guarantee of sustaining the vital business rates relief, a potential smoking ban in pub gardens to name but a few. The Budget has the potential to enable and encourage us to continue to play a pivotal role in what we are told is the primary objective of this government – getting the UK economy into growth or place further disproportionate and punitive taxation on this vibrant and dynamic sector. I've worked in this wonderful industry for almost 30 years, and it has never felt like such hard work to wade through ever increasing red tape and see your efforts increasingly eroded by disproportionate taxation. The time has come for the government to finally recognise the invaluable role pubs play in our communities and act decisively to support them. Eight out of ten people believe pubs bring people together, and three in four say their local plays an important role in battling loneliness in their community. Not only that, but our sector supports more than a million jobs and pours billions into the UK economy every year. However, despite the huge economic and social value, ever increasing taxes and rising business costs means pubs make just 12p of profit on an average pint of beer whereas tax is almost 13 times as much at £1.52 (VAT 80p, beer duty 49p, other taxes 23p). Our industry can’t bear more punitive government-imposed burdens and for many licensees, it would leave no alternative other than to close the doors for good on these beloved institutions. Our sector continues to inspire me with the innovation, creativity, entrepreneurship and resilience that I see day in day out. I don’t see another sector that has adapted and flexed more in recent years to stay profitable while giving people the best experiences they can, improving their offer and adapting their spaces to reflect the needs of the individual communities’ they serve. Despite the challenges we have continued to invest in our pubs, our people and our brands, yet any success is increasingly achieved despite the regulatory and fiscal environment rather than being supported by it. This Budget can either bolster the industry by providing the conditions and incentive for continued investment and innovation or jeopardise it. With Labour having pledged that small businesses ‘are not just the lifeblood of our communities but essential to our economic success’, I’m hoping our politicians will stand by the five-point plan they committed to and understand the need to support our nation's brewers and pubs – but we need more than hope, we need action. The British beer and pub sector contributes £34bn to the economy annually, generates £18bn in tax and supports more than a million jobs. When pubs and brewers suffer, the economy and society suffer. If the government wants to succeed in its growth mission, it needs to unleash the potential of this vital and progressive sector. At St Austell Brewery we are focused on continued growth, harnessing the momentum we’ve built to ensure that the business evolves positively and remains fit for the future. This extends to supporting our business partners running our 120 tenanted pubs across the south west, but without some relief, the industry will suffer. A fair and supportive approach to beer duty is essential for ensuring pubs remain accessible and economically viable. Business rates continue to weigh heavily on the shoulders of our business partners running pubs. The word being used is ‘relentless’. Having come through a pandemic – when the public missed pubs so much – the cost-of-living crisis, energy hikes, alcohol duty increases, lower domestic tourism, labour shortages and supply chain issues – it really has been an onslaught. I urge everyone to support your local and our industry. One simple way of doing so is through the British Beer & Pub Association’s Long Live the Local campaign, which shines a light on the issues facing our industry, allowing people to show their solidarity for the sector by signing its online petition and writing to MPs to raise awareness of the issues we face.”