In a significant financial development, the European division of Five Guys, based in London, has recorded a remarkable revenue increase to £542.9m in 2023, up from £452.3m the previous year, while substantially cutting its losses.
According to recent accounts submitted to Companies House, Five Guys has slashed its pre-tax losses from £35.6m to £16.2m, demonstrating a substantial improvement in financial health. This performance is corroborated by a surge in sales figures across its UK and European operations. The London-headquartered division achieved a revenue of £542.9m for the year 2023, marking a considerable rise from £452.3m in 2022.
The company’s expansion has been robust, with the number of outlets growing from 242 to 256 across the UK, France, Spain, and Germany. This expansion was especially notable in the UK, where revenues increased from £278.6m to £316.4m. France, Germany, and Spain also recorded significant sales growth, contributing to the overall positive financial outcome.
Employment at Five Guys saw an uptick, with staff numbers rising from 8,054 to 8,480 in 2023. Reflecting on this growth, a statement from the board expressed confidence in the company’s future expansion plans across all territories, despite ongoing inflationary pressures.
Addressing the challenges posed by inflation, the board’s statement noted, “The high levels of inflation experienced in 2022 continued into 2023 and, whilst the group was not completely immune to this, we were able to manage our cost base effectively and implement modest price increases to offset the impact of rising input costs.” This strategic approach has enabled Five Guys to maintain its trajectory of growth and profitability.
Founded in 1986 by the Murrell family, Five Guys has built a reputation for its handcrafted burgers and fries. The UK division was established in 2012 through a joint venture, with its first store opening in Covent Garden, London, in 2013. The UK arm reported revenues of £316.4m in 2023, an increase from the previous year’s £278.6m. However, the pre-tax profit for the UK division saw a decrease from £11.5m to £8.2m.
This financial performance underscores the company’s resilience and strategic acumen in navigating economic challenges while continuing to expand its market presence across Europe.
In summary, Five Guys has demonstrated remarkable financial and operational resilience by achieving a significant rise in revenue and cutting its losses by more than half across its European operations. The company’s strategic growth initiatives and effective cost management have positioned it well for continued expansion in the face of economic challenges.