Focus on burgers boosts UK profits at McDonald's

05 November 2007 by
Focus on burgers boosts UK profits at McDonald's

The UK arm of fast-food giant McDonald's saw profits surge in 2006 as its strategy of focusing on burgers rather than healthier options paid off.

The group, which has more than 1,100 outlets in the UK, saw operating profits rise by 27% to £54.3m in the 12 months to December last year (2005: £42.7m), according to accounts filed at Companies House.

The figures vindicate chief executive Steve Easterbrook's decision, when he joined in April 2005, to overturn previous policy and concentrate on burgers.

But Easterbrook admitted that pushing salads had "alienated" core customers and suggested the previous regime had been overly apologetic about the McDonald's brand.

Overall, pre-tax profits at the UK chain fell to £28.4m in 2006 from £39.1m the previous year.

This drop was caused as the company increased interest payments on a loan arranged to pay dividends to the US parent company for tax reasons, a spokeswoman explained.

Big Mac back on track >>

McDonald's bites back >>

McDonald's moves UK boss back to its US headquarters >>

McDonald's to trial new look restaurants >>

Is McDonald's still lovin' it >>

By Daniel Thomas

E-mail your comments to Daniel Thomas]( on burgers boosts UK profits at McDonald's) here.

[The Caterer Blog]( Catch up with more news and gossip on the Caterer Blog here
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking