After back-to-back losses during the pandemic period, Prestige Holdings, the parent company of KFC, Starbucks, TGI Fridays, and Subway is expected to turn a profit by the end of this fiscal year and in the first nine months has already sold more than it did for the entire 2021 .
The company, in its unaudited financial results for the nine-month period ended August 31, 2022, recorded $810 million in sales, an increase of 65 per cent over the $491 recorded in the previous year.
Prestige recorded a profit of $37 million for the nine-month period which also represented a turnaround from the $37.7 million loss for the same period last year.
“We remain positive about our performance for the remainder of 2022 and expect to end the financial year with much improved results, when compared to the two previous years which were severely impacted by the Covid-19 pandemic,” said Prestige Holdings Chairman Christian Mouttet.
Prestige, like many other companies in the restaurant industry, suffered during the pandemic when public health measures lead to the closure of restaurants for several months in both 2020 and 2021. Even when restaurants were reopened, for an extended period in both years, their operations were limited to take-away or curbside service only prior to the introduction of Safe Zones in October 2021.
Prestige recorded losses of $17.7 million in 2020 and $28.3 million in 2021.
While sales have thus far improved in 2022, the company received public backlash for various prices increases over the course of the year, most notably, KFC was prompted to reverse its decision to charge for condiments in March following a major public outcry, as well as threats of a boycott of the brand following the announcement of price increases in June.
Both measures were introduced due to rising costs faced by the restaurant industry.
Chairman Mouttet admitted that the company was still navigating these challenges.
Mouttet said, “Food and other cost inflation remain a threat to our industry and significant increases have been experienced in virtually every area. We continue to work closely with suppliers and service providers to manage these increases and have been judicious with pricing initiatives so as to minimise the impact on customers.”