THE STRATEGY of trying to sell more burgers rather than promoting its healthier salads and fruit has paid off for the fast-food giant McDonald’s, with the British arm of the company enjoying a huge boom in business.

The group, which has more than 1,000 outlets in the UK, saw operating profits surge by 27% to £54.3m in the 12 months to December last year, according to accounts just filed at Companies House. In 2005, its profits were £42.7m.

The 2006 figures cover the first full financial year since Steve Easterbrook became chief executive, in April 2005, and are a vindication of his decision to overturn previous policy and concentrate on burgers.

His predecessor had tried to arrest sluggish growth within the McDonald’s chain by offering healthier options with salads and fruit. However, the latest accounts show that last year McDonald’s experienced flat sales of about £1.1 billion. A spokeswoman said that this was partly as a result of the company transferring a number of its restaurants to franchisees, from whom it receives a percentage of turnover as a royalty.

Overall, pretax profits at the UK chain fell to £28.4m in 2006 from £39.1m the previous year. This drop relates to increased interest payments on a loan arranged to pay dividends to the American parent company, the spokeswoman said. This was more tax efficient for the group, she explained.

Elsewhere in the restaurant sector, Advent International, the American buyout firm, has decided to pull out of talks to buy Wagamama, the noodle-bar chain.

Advent had been discussing a deal with Wagamama’s owner, Lion Capital, but the two could not agree on price.

Another party said to be interested in Wagamama is Mid-Ocean Partners, a buyout firm. Lion is said to want more than £210m.

It had earlier tried to float the operation but there was a lack of appetite from City investors.

Meanwhile, a planned flotation of the steak chain Gaucho Grill is thought to be progressing well.

Times Recommends

• Food prices rise 8.3% on soaring fish and meat
• Car sales crash as economy hits skids
• House prices fall but Bank leaves rates on hold