Operating profit of 11.7 billion won, net profit of 115.3 billion won… 'Surplus' after 8 years
In these times of skyrocketing prices, the notion that more people are turning to McDonald's to save on lunch costs is not just a mere rumor.
It has been reported that Korean McDonald's has achieved record-high sales last year and successfully turned a profit for the first time in 8 years.
On the 29th, Korean McDonald's announced its performance for 2024. It recorded sales of 1.25 trillion won, an 11.8% increase compared to the previous year, marking three consecutive years of double-digit growth and breaking its own record for highest sales once again.
Total sales, including franchise stores, hit 1.409 trillion won, growing 9.1% compared to the previous year. This solidified its record of 'breaking the highest sales' for four consecutive years.
Notably, the profit turnaround is a key focus. Korean McDonald's has emerged from an 8-year stretch of deficits since 2016, achieving an operating profit of 11.7 billion won and a net profit of 115.3 billion won last year.
This achievement is attributed to menu development that reflects customer preferences and improvements in service quality, as well as a sales expansion strategy through new store openings and renovations of existing locations.
Additionally, the assessment points to enhanced management efficiency through asset portfolio restructuring and cost reduction via internal process improvements contributing to the performance improvement.
From the 'Taste of Korea' project to enhancing digital convenience
McDonald's has consistently implemented a 'Koreanization strategy' tailored to the domestic market, surpassing mere sales increases.
They have operated the 'Taste of Korea' project, which actively utilizes domestically sourced ingredients to revitalize local farms, while also strengthening value-for-money menus like McLunch and Happy Snacks. In addition, customer convenience has been elevated through the introduction of digital ordering systems such as M-Order.
Social contribution activities have also continued. Korean McDonald's donated over 1 billion won last year, a 40% increase compared to the previous year. Most of these funds were used for the construction and operation of the 'Ronald McDonald House (RMHC Korea)' for families with seriously ill children. Their efforts to collaborate with local communities are notable, as they have also delivered 'Happy Burgers' to nearby children's centers during the opening and renovation of new stores.
A representative from Korean McDonald's stated, "The consistent investment in quality and service to meet customer expectations has borne fruit," and added, "We will continue to prioritize customer-centric values and pursue sustainable growth in the future."
Image source: Photo = Insight, News1
