McDonald’s: From the difficult 2011 to a total recovery in Greece

By George Lampiris

McDonald’s recorded a total recovery and launch of its turnover in Greece in 2021 after 2020, the first year of the pandemic where it saw its sales lose around 3 million euros. In addition, in 2021 the turnover of the fast food chain in our country exceeded by approximately 14 million euros in 2019 and its pre-Covid performance. It is indicative that in 2021 the turnover of Premier Capital Hellas, a company that manages the McDonald’s brand in our country amounted to 51.88 million euros. The results before taxes returned from losses of 320 thousand euros that were in 2020, to profits of 3.12 million euros.

The bet that if someone made eleven years ago they would lose it

In fact, if one bet 11 years ago on the course of the chain and its plans in Greece and bet on its departure, one would lose. At that time, several of its stores in key commercial points of Attica (Kifissia) and Thessaloniki (with the last one on Egnatia and Agia Sofia streets) were locked and its course was constantly declining. However, Premier Capital Hellas, which took over the company in 2011 when its turnover was 19.04 million euros with a loss of 199 thousand euros, managed to return the currency.

Premier Capital Hellas is part of the Premier Capital Plc Group, which operates the McDonald’s brand and restaurants in Romania, the Baltic States, Greece and Malta.

The group’s total revenue increased by 20.1% in 2021 compared to 2020, with all markets showing a strong improvement in financial performance following the pandemic disruption recorded during 2020. In essence, the group’s turnover from 318 million euros in 2020, reached 405.4 million euros in 2021. The market that showed the highest growth rate of sales was Greece with 38%. Romania was the second region with a 30% increase in turnover, while the Baltic and Malta recorded a 19% increase.

During the year under review, the group continued to strengthen its portfolio, bringing the total number of restaurants operating to 166 by the end of the year (in 2020 it had 159 restaurants). Of these restaurants, 92 operate in Romania, 40 in the Baltic countries, 25 in Greece and 9 in Malta. It is noted that at the end of 2021 there were more than 40,000 stores under the McDonald’s brand according to Statista.

The descent to Piraeus and the retail park of Fourlis

Another investment in Greece is its activity in the commercial park – Piraeus Retail Park – built by Ten Brinke, at the junction of 86 Piraeus and Kifissos streets. In this area, the McDonald’s store is in the form of a restaurant with the logic of Drive Thru and a 24-hour operation. We remind you that the commercial park of Piraeus was acquired at the end of 2021 by the Fourlis group after an agreement with Ten Brinke.

The influence of Ukraine

Referring to the developments related to the war in Ukraine, Premier Capital plc states that despite the fact that it has no direct interest in the country, the group is monitoring the impact of the current situation on its activities in the neighboring countries of Romania and the Baltic. Inflationary pressures, supply chain disruption and increased utility costs are currently being dealt with effectively within the group, as noted. “It is difficult to quantify and differentiate the extent of such pressures from the unrest in Ukraine and the parallel events caused by Covid-19, but the combined effect on the restaurant footprint is potentially significant. The group’s forecasts continue to make “The reason for the steady performance despite the uncertainty of the current situation in its activities, while remaining vigilant in monitoring restrictions on the conduct of work with entities and individuals subject to sanctions,” the company comments through the financial statements.