A branch of the fast-food chain McDonald's has opened in Vatican City, the seat of the Catholic Church, despite protests from residents and cardinals.

The branch opened in a building belonging to the Holy See that rented out rooms to the US giant just metres from St Peter's Square.

Pope Francis holds hands with faithful after celebrating a new year's eve vespers Mass in St. Peter's Basilica at the Vatican, Saturday, Dec. 31, 2016. (AP Photo/Andrew Medichini) Credit:AP

Cardinals also expressed their outrage in comments to Italian media.

Pope emeritus Benedict XVI lived just a stone's throw from where the fast-food outlet is now situated before he was elevated to the papacy.