Jakarta. The fast-food chain KFC Indonesia has reported ballooning financial losses of Rp 557.08 billion for the third quarter of 2024, leading to the closure of dozens of outlets and the dismissal of 2,274 employees over the past year.

Fast Food Indonesia (FAST), the company operating KFC outlets in the country, attributed the steep losses to a mass boycott driven by public sentiment surrounding the Israeli-Palestinian conflict, coupled with a sluggish recovery from the Covid-19 pandemic.

"These two events have negatively impacted the company's financial performance for nine consecutive months, ending on September 30, 2024," the company said in a statement.

The company's third-quarter loss represents a staggering increase of 266.45 percent compared to the Rp 152 billion loss in the same period last year, according to its financial reports.

Revenue fell 22.34 percent year-on-year to Rp 2.58 trillion, while sales of food and beverages saw a sharp decline of 22.39 percent, from Rp 4.6 trillion to Rp 3.57 trillion.

The number of KFC Indonesia outlets decreased from 762 in December 2023 to 715 in September 2024, with the total workforce shrinking from 15,989 to 13,715 over the same period.

The shares of FAST, which also holds the licenses for other fast-food brands including Naughty by Nature and Taco Bell, have declined by around 60 percent year-on-year as of Monday.