McDonald's lifts Australian sales by 4pc

Australia's insatiable appetite for Big Macs and newer incarnations such as "fancy" Angus beef burgers drove a 4 per cent lift in sales for the domestic arm of fast-food giant McDonald's in 2010.

That hunger saw Australia singled out by the US-domiciled McDonald's Corp as one of the Asia-Pacific region's best performers last year, second only to emerging neighbour China.

But financial records filed with the Australian Securities and Investments Commission show net profit for McDonald's Australia Holdings nearly halved in 2010, after one-off gains that underpinned the prior year's result were not repeated. Profit was $188.5 million, down from a whopping $364.1 million in 2009.

Overall revenue for the Australian parent company fell 13 per cent to $1.46 billion, despite higher rental and service fee revenue from its franchisees. A $308 million payment for the sale of intellectual property rights to a related entity boosted the company's 2009 figures.

McDonald's Australia owns about one-third of the 830 McDonald's restaurants across the country, with the remaining two-thirds operated by franchisees. They pay rent and service fees to McDonald's, which in turn pays its own fee - $317.6 million last year - to the US parent.

The company used its strong balance sheet to ramp up its reinvestment in the business, with $191.9 million spent on product range improvements and restaurant refurbishments during the year to December 31.

But in its typically brief directors' report, McDonald's Australia offered no commentary on the year ahead, noting only that the group "performed consistently well during the course of (2010)".

The Australian arm of the chain is headed by Catriona Noble, who joined the company as a 14-year-old crew member 27 years ago before working her way up the ranks.

Globally, McDonald's was reportedly overtaken by Subway in terms of store numbers last year.