Galway’s native fast food group Supermac’s has recorded a massive rise in profits of more than a third.
Newly filed accounts show that the Supermac’s group co-owned by Pat and Una McDonagh saw a 37% increase in profits last year to €21.8 million.
The company the McDonaghs own controls Supermac’s fast food outlets, hotels and numerous property investments.
Filings show that overall Sales at the company also increased by 15% last year to €157 million.
Increases in revenue were driven by the success of motorway plazas and other new Supermac’s outlets.
The Irish Times reports that the McDonagh’s are planning to sell off the remaining pubs they own in the US Midwest over the next few years.
Pat McDonagh said that several have already been sold and more will be as it’s difficult to mange them from Galway.
The McDonaghs employ more than 1,600 people across their various businesses, which will go up with new investments coming online.
Permission has recently been granted for a new motorway plaza on the M7 at Portlaoise and another in Longford is also in the works.
They would join existing plazas on the M6 near Loughrea and the “Barack Obama” plaza at Moneygall.
However plans for another on the Galway to Limerick motorway near Ennis are in limbo after a scandal involving forged letters of support sent to Clare county council.
Other properties owned by the McDonagh’s include the Killeshin hotel in Loais, Castletroy Park Hotel in Limerick, the Charleville Park in Cork, Lough Rea hotel in Galway and the Athlone Springs.
Pat McDonagh has said that he expects to acquire another hotel early next year.
Supermac’s also owns the Irish franchise for the US fast food pizza chain Papa John’s which is often paired with Supermac’s outlets in Ireland.
Commenting on the year’s business in 2018, Mr McDonagh has said they’ve seen a modest increase in revenue with a good tourist season.
Going into 2019, he expects costs to rise between 8 and 10 percent with increasing VAT and labour costs playing a factor.
A year of poor weather with a summer heatwave has also driven up food prices.