Propel Morning Briefing Mast Head Propel Hospitaliity website Paul's Twitter Link Subscribe Unsubscribe Web Version Forward Email Swifty Banner Morning Briefing Strap Line
Sat 5th Oct 2019 - Exclusive: KFC UK reports full-year like-for-likes down 6.8% as it feels impact of delivery saga
Exclusive – KFC UK reports full-year like-for-likes down 6.8% as it feels impact of delivery saga that shuttered 750 restaurants: KFC has reported its UK business saw like-for-like sales fall 6.8% for the year ending 23 December 2018 in a year where it encountered severe supply problems when it changed its third-party distribution that forced it to shut more than two thirds of its restaurants. Turnover fell to £207.4m, compared with £445.8m the year before as the company continued its refranchising push. The company also suffered a fall in sales as a result of 750 of its circa 900 sites being closed in February 2018 due to a mass chicken shortage. Some restaurants were shut for weeks and then operated with a limited menu as a result of “teething problems” with a new delivery partner – DHL in partnership with QSL – and KFC eventually went back to previous supplier Bidvest Logistics for about a third of its restaurants. KFC said sales steadily recovered during the year and returned to growth by the year end. Operating profit fell to £137.4m, compared with £188.0m the previous year while pre-tax profit was down to £138.4m, compared with £186.2m the year before, according to accounts filed at Companies House. KFC refranchised 91 restaurants and recorded net franchising gains of £98.7m. By the year-end, franchises were running 95.6% of all KFC sites, up from 87.1% in 2017. In their report accompanying the accounts, the directors stated: “2018 started with strong like-for-like sales growth performance in the weeks leading up to the distribution crisis. Closure of stores and operating on a limited menu during the height of the distribution crisis resulted in an overall sales decline for the year with like-for-like sales down 6.8% (2017: increase of 3.8%). The company steadily recovered transactions through the remainder of the year returning to positive sales growth by year end. Operating profit margin of 66.3% has increased when compared to that of the prior year (2017: 42.2%). This includes refranchising gains of £98.7m (2017: £112.8m). After excluding refranchising gains, operating profit margin increased from 16.9% in 2017 to 18.7% in the current period. This is due to an increase in cost saving initiatives implemented across the business. The refranchising activity in the equity business resulted in a decrease in the total average number of employees by 56.3% during the year.” Company store sales were £131.7m, compared with £379.6m the year before, while franchise royalties and fees were £75.7m, compared with £66.1m the previous year. UK sales were £179.8m, compared with £423.8m the year before, while European sales were £27.6m, compared with £22.0m the previous year.


Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
McCain Banner
 
Zapaygo Banner
 
Matthew Clark Banner
 
Deliverect Banner
 
A2Z Masks Banner
 
Pub Plants Banner
 
Yoello Banner
 
Ei Group Banner
 
OrderPay Banner
 
TipJar Banner
 
Trail Banner
 
Odamo Banner
 
Arla Foods Banner
 
Nestle Waters Banner
 
Yumpingo Banner
 
Camile Banner
 
Pepper Banner
 
The Leisure and Hospitality Collective Banner
 
LunchMate Banner
 
Biff's Banner
 
Zonal Banner
 
Swifty Banner
 
Yudu Banner
 
Orderbee Banner
 
Startle Banner
 
Pago Banner
 
Access Banner
 
Ten Kites Banner
 
Prestige Purchasing Banner
 
IOL Banner
 
COREcruitment Banner
 
Punch Taverns Link Punch Taverns Link
Wi5 Banner
ALMR Web Link Web Version Unsubscribe Subscribe Propel Info website