Profits Up, Donations Down: McDonald’s Balances the Books

McDonald’s UK nearly doubled its profits in 2024 — yet behind the headline lies a stark shift in priorities. While pre-tax earnings surged to £120 million, the company slashed thousands of jobs, reduced its charitable donations by nearly half, and continued to grapple with deep-rooted workplace controversies. For business owners in hospitality, the story is more than a balance sheet — it’s a reflection of the difficult choices facing large-scale operators in a turbulent market.

Profits Climb, But Questions Follow

According to its latest Companies House filing, McDonald’s UK posted pre-tax profits of £120 million, up from £66.3 million in 2023. Operating profit climbed from £10.7 million to £75.5 million, despite a modest drop in total turnover from £1.83 billion to £1.82 billion.

The financial boost was largely attributed to cost-cutting, with the board stating the increase was “predominantly driven by savings in administrative expenses”. However, inflation in food, paper, and utilities continued to weigh on margins.

Despite the stronger financial position, McDonald’s issued an £83 million dividend to its US parent — a notable shift from the previous year, when no dividend was paid.

Donations and Jobs Take a Hit

In contrast to its growing profits, the company’s charitable donations dropped significantly. Contributions to Children in Need fell by 44%, from £952,000 to £529,000, while support for Ronald McDonald House Charities slipped from £779,000 to £744,000.

Meanwhile, staffing was reduced by more than 2,000 employees in its directly operated outlets — from 26,384 to 24,375. While McDonald’s stated that many of these roles were transferred to franchisees, the accounts did not provide a breakdown of exactly how many jobs were transferred versus lost.

“Employees have been transferred to franchises as part of a wider long-term strategy… The long-term goal is to have 95% of locations franchised.” — McDonald’s board statement.

Safeguarding in the Spotlight

The brand continued to face fallout from workplace misconduct allegations. Following a 2023 BBC investigation, McDonald’s UK CEO Alistair Macrow confirmed to MPs that 75 sexual harassment allegations were made in the past year. Disciplinary action was taken in 47 cases, resulting in 29 dismissals.

To restore confidence, the company has appointed a Head of Safeguarding, established a new investigation handling unit, and launched a “red flag” campaign across its estate. It has also retained three law firms and an external consultancy to oversee the review of internal processes.

Competitive Pressures Mount

The fast-food landscape is changing fast. In 2025:

• KFC announced a £1.5 billion investment across the UK and Ireland, including 500 new restaurants and 7,000 new jobs.
• Popeyes plans to open 45 new UK sites, aiming to double its footprint and generate £200 million in annual sales.
• Wingstop, under new ownership, is launching 20 new sites, supported by US private equity.

While McDonald’s retains massive brand equity, the challenge is now twofold: protect margins while upholding brand values, especially as consumers demand both affordability and ethics from global chains.

What Operators Should Take From This

McDonald’s UK is undoubtedly tightening operations for resilience. But its story underscores a deeper point for hospitality leaders: profitability alone is no longer the only benchmark of success.

In an age of social scrutiny, value-led decision-making matters to customers, employees, and stakeholders alike. Cost-cutting might drive the short-term bottom line, but if it undermines reputation, staff wellbeing, or community relationships, the long-term price could be far higher.

For operators, the takeaway is clear: revenue matters, but so does responsibility. And increasingly, the two are linked.