FAST-FOOD giant McDonald's increased its pre-tax profit in Ireland by 32 per cent to €15.7 million in 2007, but the company said yesterday that its sales this year would fall short of expectations as consumers rein in their spending due to the economic downturn.

"We're trading reasonably well," said Marcus Hewson, managing director of McDonald's Restaurants of Ireland Ltd. "We're in positive territory in terms of sales and transactions, but people are spending a little less money, so we're below forecast."

Mr Hewson said customers were spending about €5 on average in store and around €8.50 on average at its drive-through facilities. He said McDonald's was battling against higher commodity prices, rising labour rates and increasing energy costs. On a positive note, property costs had eased.

Figures published yesterday show that McDonald's recorded sales here of €192 million in 2007. Its like-for-like sales growth last year was 6.2 per cent. The company paid €2.7 million in corporation tax, the same level as in 2006.

The fast-food group recently opened a second outlet in Sligo, bringing its store numbers to 75. It plans to add restaurants in Ennis, Maynooth and Portlaoise in 2009.

McDonald's said that it was investing €10-12 million on new stores and refurbishments this year.

McDonald's turnover in Ireland rose to €92.4 million last year from €85 million in 2006. This comprises sales through its 20 company-owned restaurants and rental and service fees charged to franchises.

McDonald's said yesterday that its global sales had risen by 7.1 per cent in the third quarter of this year.

Its consolidated operating income increased by 20 per cent, while its earnings per share rose by 27 per cent to $1.05.