Profits at the Irish arm of fast food giant McDonald's rose by almost 49 per cent last year to €11.9 million, according to accounts just filed.

This resulted from strong sales, which increased by 11.7 per cent to €85.1 million in the year to the end of December 2006.

By contrast, the cost of sales increased at a lower pace, rising by 9.4 per cent to €23.3 million. Its administrative expenses, meanwhile, grew by 6.9 per cent to €49.6 million.

That gave the company an operating profit of €12.2 million for the year, compared with €8.5 million in 2005.

McDonald's Restaurants of Ireland paid interest of €308,000 last year, down from €469,000 in 2005.

The company's tax bill in 2006 was €2.7 million, up from €1.8 million the previous year.

No dividend was paid by the company to its United States-based parent company.

McDonald's employed 1,258 people in Ireland last year with staff costs amounting to €21.4 million.

Director's remuneration rose from €429,000 to €509,000.

McDonald's had 22 company-owned stores in Ireland in 2006 and 53 which operated as franchises.

The accounts state that the company expects "continued expansion of its operations in Ireland".

McDonald's sales in Ireland have been boosted in recent years by the introduction of healthier options to the menu and cafes in certain outlets.

The company said it would seek to minimise damage to the environment from its activities and had complied with all regulations.