Pat McDonagh, the Galway-based entrepreneur who has grown his Supermac’s fast food chain to more than 100 outlets since founding it in 1978, has struck a €26 million deal to cash in on some of his property holdings.
Mr McDonagh has sold 18 of the restaurant buildings, which he owned personally, to Supermac’s Holdings, the parent company of the group. He says he retains ownership of a further 12 restaurants, which he may also choose to sell to Supermac’s at the end of this year.
He said the restructuring was “recommended by the accountants”, as he looks to consolidate all of the group’s interests under the one umbrella company. On his personal windfall, he said it would be less than €26 million once debt on the properties was paid off.
The Supermac’s business has made Mr McDonagh, on paper, among the wealthiest self-made entrepreneurs in the west of Ireland. Accounts show the group, which is owned outright by Mr McDonagh and his wife, grew sales last year by 18 per cent to €93 million. It paid him rent of more than €1.6 million last year.
After a writedown of €2.6 million related to money owed by a group company, Supermac’s made net profits of €5.7 million in 2014, bringing its total retained profits to almost €60 million. “We had a good year last year and we’ve plenty of growth on the east coast this year. The good year for tourism helped,” he said.
Hotel purchases
The 2014 balance sheet says the group, which this year also bought the Killeshin and Charleville Park hotels, has shareholders’ funds of €59 million, although the business would likely fetch far north of this if Mr McDonagh were ever to sell.
When asked if he was weighing up cashing out of the business entirely, he said: “Not in the slightest. We are only getting going.”
Supermac’s opens another outlet next week in Belfast, opposite Casement Park GAA ground. Mr McDonagh is also investing in new motorway service stations to go with his Obama Plaza in Offaly. He also owns Claddagh Irish Pubs, which has 11 outlets in the US.
