McDonald’s has reportedly routed even more royalties than before through its Luxembourg unit, after saying that it would stop the practice altogether, a British newspaper has said.
“Franchise rights” payments from its UK operations to what appears to be the fast food giant’s grand duchy-based business rose nearly 8% between 2015 and 2016, according to the Telegraph’s analysis of McDonald’s corporate filings.
“Accounts for 2016, filed by McDonald’s Restaurants Limited at Companies House, are believed to represent the last year under the old structure. They show franchise payments rising from £122.7m to £132.2m. This cut operating profit for the year by almost a third on what it would have been without the franchise payments.”
The newspaper said the company did not respond to its request for comment. As of this writing, McDonald’s press office had not returned Delano’s message seeking comment.