Kentucky Fried Chicken (Bermuda) Ltd. saw profits drop last year due in part to higher food costs and lower sales.

Net income for the year ending January 31, 2008 totalled $310,009, a drop of $82,579 in comparison to the previous fiscal year.

The bulk of the drop in sales occurred during the first six months, when the restaurant saw its earnings drop by $100,297. This fall was largely due to the popular fast food restaurant having to close for a two-week period in April to renovate the kitchen and refurbish the store.

The second half of the year saw profits rise slightly with an increase in prices in May 2007. The price increase softened the blow of the April closure and a rise in the cost of food, and helped to increase net income by $17,718 in the last six months of the year.

Despite the increase in expenses and decrease in sales, chairman Donald Lines remains hopeful for the future.

"We look forward to the 2009 fiscal year with guarded optimism and hope that the continuous steps we have taken to upgrade our facilities and to control costs will generate increased sales and profits in the future," he said yesterday in a press release.