KFC reports 3% decline in FY turnover: KFC UK and Ireland has reported a 3% decline in turnover for the year to 25 December 2022, as it said its performance was impacted by the cost-of-living crisis. Turnover for the period stood at £284,274,000 (2021: £292,915,000), with a pre-tax profit of £89,927,000 (2021: £101,562,000). It said: The business continues to drive growth through focus on building culture and people capability, developing new restaurants, delivering great customer experiences and ensuring customers can access KFC in the way they want to. The comparative year showed an extremely strong financial performance as the business built on the growth seen in the second half of 2020, where the variety of sales channels (delivery, drive-thru, take away and dine in) allowed flex for KFC customers to access KFC in line with government covid-19 guidance. Furthermore, included within the comparative year was the continued reduction in the VAT rate for the Hospitality sector influencing on a higher sales performance. During 2022, when comparing to the recent performance in the comparative year, combined with the cost-of-living increases that incurred during 2022, the performance of the business shows a 3% decline in Turnover, nevertheless reporting a strong value of £284.3m. Operating profit has decreased compared to prior year to £86.5m (2021: (restated) £118.7m) impacting on the operating profit margin also decreasing to 31% (2021: (restated) 41%). The company has net assets of £331.5m as at the end of the 2022 financial period (2021: (restated) £275.4m).” Last week, KFC announced it is to acquire 218 restaurants from EG Group, its largest franchisee in the UK and Ireland, for an undisclosed sum. KFC said the transaction represents a “significant opportunity to accelerate KFC’s growth strategy in the large and growing UK and Ireland chicken market, with high average unit volumes and robust margins”. Once completed, all of EG’s KFC UK and Ireland business – more than half of which is made up of drive-thrus – and 7,800 team members will come under KFC UK and Ireland management. KFC’s parent company Yum! Brands said it anticipates finalising the transaction by the end of the first half of 2024. It said the transaction will be funded from Yum!’s cash flows and is expected to have an immaterial impact on Yum!’s 2024 financial results. KFC features in the Propel Turnover & Profits Blue Book. Its turnover of £292,915,000 in the year to 26 December 2021 is the 34th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.