McDonald's Georgia published 2020 financial report. According to the report, the total income of the company amounted to GEL 96 million, which is GEL 3 million less compared to 2019. The main reason for reduction is the pandemic and drop of foreign visitors by 80% in the country.
The chain of McDonald's Georgia is presented by 18 restaurants, logistics center and baking enterprises. The group employs more than 1400 people.
"2020 was a challenge year for all industries, but special difficulties were created for the restaurant business. Despite the crisis, McDonald's Georgia managed to open two new branches in Tbilisi.
Apart from the opening of two new branches, in 2020 the company opened baking enterprise with investment of GEL 26,000,000 in order to improve the product quality. McDonald's Georgia is one of the largest contributors of the Georgian economy. In 2019, the company gave GEL 19,980,000 to the budget and the volume of total investment amounted to GEL 14,000,000 in the same year. In 2020, he invested GEL 19,000,000 for two new restaurants”, the company's report reads.
According to the report, delivery service was the most rising direction of McDonald’s Georgia in 2020, where sales increased by 85% compared to 2019.
"The number of customers was down by 20% due to the economic situation and restrictions caused by COVID-19 in 2020, while the income was reduced by only 2% due to increase of delivery services, as well as opening two new branches”, the statement reads.
McDonald's Georgia spent GEL 47 million for purchasing raw materials last year. The volume of compensation and other benefits of the company was GEL 16.2 million. According to the audited financial report, McDonald's Georgia spent GEL 3.4 million on advertising in 2020.
In 2018, McDonald's Georgia took over EUR 20 million from EBRD. The Strategic Development Plan of the Company is covering the market area of Tbilisi and Georgia to become company's service more accessible. However, due to the impairment of the national currency in 2020, the volume of foreign exchange liabilities of the company has increased, due to the company's exchange loss amounted to GEL 19.5 million. Taking into consideration this, McDonald's Georgia had a loss of GEL 19 million last year instead of profit.
The assets of "McDonald’s Georgia" are GEL 149 million, and long-term liabilities are GEL 97 million.
According to the financial report, businessman Temur Chkonia owns 90% share of the company. The company has extended the license of "McDonald's" in 2018 for another 20 years.
