Premier Capital plc, the Malta-based developmental licensee for McDonald’s across six European markets, has announced plans to expand its restaurant network with the opening of 11 new outlets in 2025. Among these, nine will be launched in Romania, one in Lithuania, and another in Malta.

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The company, which currently operates McDonald’s restaurants in Malta, Estonia, Greece, Latvia, Lithuania, and Romania, will also close one underperforming location in Greece. This adjustment will bring Premier Capital’s total McDonald’s footprint to 203 restaurants by the end of 2025.

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This upcoming expansion builds on the momentum from 2024, a year during which the group added eight net new restaurants — growing its network from 185 at the end of 2023 to 193.

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Despite the growth, Premier Capital is anticipating financial headwinds in 2025. The group expects a 10.6% decline in profit before tax, down to €55.4 million, and a 15% drop in net profit to €42.3 million, largely due to ongoing cost pressures. Rising food prices — particularly for beef — and increasing labour costs are cited as the main challenges across all six markets.

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Nonetheless, the group’s asset base is forecast to grow by 4.5% to €469.2 million, driven by continued investment in its restaurant infrastructure. Total liabilities are projected to rise by 8%, exceeding €379 million, primarily due to higher lease obligations and additional bank borrowing planned for 2025.

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The company is also projecting a short-term rise in food inflation of around 3%, influenced by elevated costs in agricultural commodities and tightening labour conditions. These inflationary pressures, already visible in 2023 and 2024, are expected to persist into the coming year.

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Labour market constraints are also likely to affect Premier Capital’s cost structure, with wage growth expected due to competitive hiring environments across its operating regions.

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Despite these pressures, Premier Capital is forecasting revenue growth across all six countries in 2025, building on a strong performance in 2024, when it served 90 million customers and recorded €50 million in post-tax profit. Romania is expected to lead growth due to its high concentration of outlets, while revenue in Malta is also projected to rise, supported by the addition of a new restaurant.

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Net finance costs are expected to increase as well, reflecting both higher borrowing costs and reduced investment income in a more challenging economic environment.

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