By Gordon Deegan

Revenues at the McDonald’s franchise operator, Aarval which operates three outlets in Galway city, increased by 16pc from €40.27m to a record €46.93m in 2023.

However, increased costs at Aaron Byrne’s and Valerie Byrne’s Aarval Ltd contributed to pre-tax profits dipping marginally from €1.645m to €1.635m.

Revenues at the Byrnes’ franchisee McDonalds business — which is the largest in the west and midwest — have grown exponentially in recent years and the 2023 revenues of €46.93m are a four-fold increase on pre-Covid 19 revenues of €11.7m in 2019.

Numbers employed by the Byrne husband and wife team in 2019 totalled 245 and by the end of 2023 had increased to 937.

Aarval initially operated a McDonald’s outlet in Galway’s Shop Street, along with two other outlets in Galway City at Westside Shopping Centre and the Headford Road Retail Park.

In December 2020, the Byrnes expanded their Aarval business when acquiring four McDonalds restaurants in Limerick at Cruises Street in the city centre; at Jetland shopping centre, Caherdavin; at the Crescent Shopping Centre at Dooradoyle and at the Castletroy Shopping Centre at Castletroy, Limerick.

The couple further expanded their Aarval business when acquiring McDonalds outlets in Co Clare at Shannon and in Ennis in May 2021 while they scaled back their Limerick operation in August 2023 with the closure of the McDonalds on Cruises Street.

The directors’ report for 2023 states that they are satisfied with the results for the year and look forward to growth in the company’s activities in the coming year.

2023 was another year for expansion for the company as numbers employed increased by 89 from 848 to 937 with staff costs rising from €13.42m to €15m.

The pre-tax profit for 2023 takes account of non-cash depreciation charges of €1.45m, non-cash amortisation costs of €459,459 and interest costs of €241,547.

Profits were also hit by a loss of €491,240 on the disposal of intangible assets.

The company recorded net cash of €5m generated from operating activities in 2023 which compared to €3.11m under that heading in 2022.

At the end of December 2023, the company’s accumulated profits totalled €8.48m while its cash funds more than doubled from €2.38m to €5.1m.

Pay to directors increased in 2023 from €259,808 to €271,612 made up of €199,612 in emoluments and €72,000 in pension contributions.

Mr Byrne is also a director of McDonald’s Marketing Company of Ireland Ltd and in 2023, the company provided marketing services to Aarval totalling €1.9m on an arm’s length basis.

Pictured: The McDonald’s outlet at Westside Shopping Centre.