KFC fries $25M in shareholder profits

Prestige Holdings Limited, the franchise holder for KFC, saw a significant increase in group sales and profits attributable to shareholders, according to its 2004 annual report. Group sales and profit attributable to shareholders increased by 16 percent and 50 percent to $456 million and $25 million, respectively. These results were generated from 72 operating restaurants, compared with 65 restaurants in 2003. Total Group assets increased by 14 percent to $247 million, and the debt to equity ratio improved from 58:42 to 56:44 during the financial year. An additional long term debt of $72.3 million was negotiated with bankers, to refinance the existing short term debt of $57.5 million, and to fund future expansion.

KFC’s operations in TT continue to be the “Big Truck,” gaining market share and retaining its dominance in the quick service restaurant sector.  In 2004, Prestige opened one new restaurant, refurbished two units, relocated two units and ended the year with 48 operating restaurants. An excess of 60 million pieces of chicken was sold during the year, representing over 20 percent of processed birds market. In the Dominican Republic, the strengthening of the management team has led to the turnaround in the performance of 11 KFC restaurants.

Although Kentucky Foods Group Limited (KFGL) suffered a net loss of $2 million for the year just ended, the company had accumulated modest profits over the past five months. TGI Friday’s two restaurants in Trinidad again delivered record results, and the third unit was opened in Gulf View, La Romain on December 5, 2004. The restaurant in Dominica is once again performing well. The TGI Friday’s brand was also established in Jamaica, with the opening of the first restaurant in Kingston on December 5, 2004. The six Pizza Hut restaurants in Trinidad delivered good sales growth and profitability.