Profits at the 770 UK restaurants owned by fast food giant McDonald's fell by 71 per cent to £23.6 million in 2003.

The group said the fall was "entirely due" to a restructuring of its financial set-up but added it had experienced a "challenging couple of years".

Profits at the UK parent company, which adds in contributions from its 470 franchises and real estate activities, were the same as last year at £118 million and in line with expectations, McDonald's said.

Turnover fell to £1.09 billion from £1.13 billion a year earlier.