Malta-based Premier Capital plc, the developmental licensee for McDonald’s in six European countries, has announced plans to open 11 new restaurants in 2025, including one in Malta.
According to the company’s 2024 Financial Analysis Summary, nine stores will be launched in Romania, with one opening in Lithuania and another in Malta.
However, the group will also be closing one underperforming restaurant in Greece, bringing Premier Capital’s total number of McDonald’s outlets to 203 across its six markets.
Premier Capital operates McDonald’s restaurants in Malta, Estonia, Greece, Latvia, Lithuania, and Romania through a network of subsidiaries. The planned expansion builds on steady growth in 2024, during which the company recorded a net increase of eight new restaurants, growing its portfolio from 185 at the end of 2023 to 193 by the close of 2024.
The group is also anticipating lower pre-tax profits in most markets, along with a decline in pre-tax profit margins across the board. This is attributed to ongoing cost pressures, primarily from high food prices – particularly beef, which remains at historically elevated levels due to supply constraints – and rising labour costs, with wage pressures evident in all jurisdictions where the group operates.
The company is forecasting a 10.6 per cent drop in profit before tax, down to €55.4 million. Net profit is expected to fall by 15 per cent to €42.3 million compared to the previous financial year.
However, the group has forecast its asset base to grow by 4.5 per cent to €469.2 million, driven by continued investment in its restaurant network. Liabilities are also expected to rise by 8 per cent to just over €379 million, mainly due to higher lease obligations and additional bank borrowings planned for the current financial year.
Looking at key developments, Premier Capital has forecast a short-term rise in food inflation to 3 per cent, driven by cost pressures in agricultural commodities and labour. This trend was already evident in 2023 and 2024, and inflation is expected to climb again in 2025.
Labour market trends are also expected to influence Premier Capital’s financial performance in 2025, with the group citing “tight or tightening labour conditions” that could lead to upward wage pressures.
Following a record year in 2024 – serving 90 million customers and generating €50 million in post-tax profit – the group is forecasting continued revenue growth across all six markets in 2025. The largest gains are expected in Romania, where the group operates the majority of its restaurants.
Revenue in Malta is also set to rise, supported by the opening of a new outlet this year.
In 2025, net finance costs are also expected to increase, due to lower investment income – driven by a tougher economic environment – and higher borrowing costs. The increase reflects new bank loans and higher lease interest from the new restaurants opening during the year.
