KFC Ireland franchise firm posts €2m loss
THE COMPANY that operates the Kentucky Fried Chicken (KFC) franchise across Ireland fell further into the red in 2010 to record pre-tax losses of €2 million, new figures show.
In documents just filed with the Companies Office, they show that Herbel Restaurants (Ireland) Ltd sustained the increased losses after revenues at the firm dropped by 8 per cent from €23.3 million to €21.4 million in the 12 months to the end of December 2010.
The company operates 18 KFC outlets in Ireland and according to the directors’ report “despite the economic conditions the KFC franchise business continues to trade well”.
The company’s revenues are split between €18.7 million from sales at KFC outlets and €2.7 million in rent with the company owning a substantial portfolio in the UK and Ireland with the properties situated in prime locations and predominantly occupied by large retailers. The report states: “The company enjoyed good rental returns during the year.”
The pre-tax loss of €2 million compares to a pre-tax loss of €18,964 in 2009. Pushing the firm further into the red in 2010 was a €1.3 million impairment of land and buildings and non-cash depreciation costs of €905,733 and amortisation costs of €61,052. This resulted in a cash profit in 2010 of just over €260,000.