Preview

Kfc Business Analysis

Powerful Essays
Open Document
Open Document
4811 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Kfc Business Analysis
KFC (Kentucky Fried Chicken) is founded in 1995 and has grown to one of the world's largest chain of fried chicken fast food restaurants, headquartered in Louisville, Kentucky in the United States. KFC is the second largest restaurant chain after McDonalds, with over 17,000 outlets in 105 countries and territories. Colonel Harland Sanders, who began selling fried chicken from his roadside restaurant in Corbin, Kentucky during the Great Depression, founded it. Quality, service and cleanliness represent the most critical success factors to KFC's global success.
Financial Analysis
KFC is very much financially stable and healthy. Table 1 shows their revenue are increasing comparing to the previous year. The % changes are positive showing increase in amount, and all the negative percentages are expenses. It shows that their sales are increasing while the costs are decreased. They reduce many of their variable costs, while their production is growing. This proves that they are improving their management and production. Compared to the previous years, they show really steady improvements.
Chart 1 shows how well KFC is doing comparing to its competitor McDonalds for the past a few years. Also it shows the financial state of KFC over time and how they maintain the stock price.
Table 2 shows the cost of revenue and sales on the common size statement shows that its competitor is much more efficient than KFC. Also the comparison of Net Income for common share shows the McDonalds doing much better than KFC. However; KFC has great investment opportunity like its competitors.
Table 3 shows the Ratios comparison and it shows how well KFC is doing. Current Ratio, quick ratio and debt to equity are describing that the company has debt and comparing to its competitors, the company has much more debt with Debt/common equity ratio 129.20. However; they higher return of everything comparing to its competitor. The ratios and % from the inventory turnover to ROE in the table shows

You May Also Find These Documents Helpful

  • Powerful Essays

    This is a brief analysis and comparison of select financial ratios of four companies: two in the manufacturing and two in the retail food industries. The financial ratios analyzed are the current ratio, debt ratio, profit margin, return on assets. I should point out that I used the most recent financial reports provided for each company, although in some cases they may not represent the same years. All dollar figures are in thousands.…

    • 2439 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Xacc280 Week 9 Final

    • 2678 Words
    • 11 Pages

    In order for a company to be financially healthy, it is of most importance that the company must analyze, interpret, and review the business’s annual financial reports. The financial analyses of the annual reports provide insights and information regarding the performances of the business. In this paper, I will be disclosing financial evaluations and comparisons between Coca-Coca and PepsiCo Incorporation. The visualizations used in this paper were designed to provide the analyses performed utilizing three financial analyses methods: vertical analysis, horizontal analysis, and ratios analysis. There will also be recommendations made on how Coke and Pepsi could improve their financial status.…

    • 2678 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    To any company whether small or a large corporation, the financial analysis is very important in order for a successful business. This will determine if the company is healthy enough to invest or even to see where you are weak in the financial part of the business. It is the company’s responsibility to present accurate analysis of their financial reports. What I hope to present to you is information that you will help see the comparison of both companies within their financial standings. In this report I will present a vertical analysis and a horizontal analysis, and ratio analysis. I will also try to provide some strategies…

    • 1114 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Foodcrop Spot

    • 570 Words
    • 3 Pages

    From the Financial and Market data, some ratios indicate that Foodcorp needs to be improved since these following ratios – Inventory Turnover, Return on average…

    • 570 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    costco financial

    • 1274 Words
    • 6 Pages

    By using financial statement, we calculated different financial ratios for liquidity, debt ratios and other significant in order to see the performance of Costco more clearly. We also performed DuPont analysis and identified return on asset and return on equity to get more details regarding the performance of Costco.…

    • 1274 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Currently, McDonald’s success is still on the rise. Global sales have climbed 6% in the third quarter. Their net income jumped to nearly 1.5 billion, sales were up by about 4%, and the shares have risen about 26 percent this year. They attribute their growing success to maintaining low-priced items in comparison to other competitors such as Burger King and Wendy’s whose menu prices steadily increase each year. However, the increasing cost of commodities such as meat and wheat are forcing the chain to raise menu prices in the coming year. Although McDonald’s initially refused to significantly increase prices, they have realized a slight jump in food price will help cover their heightened expenses. They are worried this price increase will have a negative effect on their customer base as the economy is still in recovery mode.…

    • 886 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    M&S’s financial statements represent stability within the company. Revenue increase was a highlight within the key performances, which included a substantial rise in its food business. However the segment information also shows that were less efficient in controlling their product costs (cost of sales).…

    • 3962 Words
    • 16 Pages
    Powerful Essays
  • Best Essays

    The report is mainly focusing on Kentucky Fried Chicken (KFC) company and has been divided into three categories at the aim of identifying the leadership and management issues in the company and suggest appropriate solutions to it.…

    • 4746 Words
    • 19 Pages
    Best Essays
  • Good Essays

    Kentucky Fried Chicken Corporation is player in a leveled-off fast-food industry. With the maturation of this industry in the United States, the restaurants involved face increased intense competition for customers. I find interesting how difficult it is for KFC and other restaurants in other segments of the industry to maintain market share control price because of the amount of competition and rivalry. The restaurants face competition within their segment and with the other segments in the industry. This, along with the NAFTA agreement, has given opportunity for industry leaders, including KFC, to expand more aggressively in Latin America.…

    • 822 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Kfc Data

    • 6364 Words
    • 26 Pages

    * 5. RE-ENTRY OF KFC…… The company had to shut all but one outlet in the country. Recently in 2003 it made a quiet re-entry into the Indian market. Came up with the strategies and menu that is desirable by the Indian consumers. Mission statement “To be the leader in western style quick…

    • 6364 Words
    • 26 Pages
    Good Essays
  • Good Essays

    Reccomendation to Kfc

    • 718 Words
    • 3 Pages

    As we know, KFC is one of the leading Fast-Food chains in the world, but their market share has been declining globally since 1989. According to the case, (pg number C-211, exhibit 4) their market share has declined from 70.8% to 55.6% in 1999. Also because of KFC’s dominating and widespread leadership in the US market tends to give more opportunities to rivals as the U.S. base growth rate is about 1% annually. Therefore it is totally understandable why KFC has not been able to capitalize its outmost performance over the year.…

    • 718 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    History of Kfc

    • 1000 Words
    • 4 Pages

    KFC (Kentucky Fried Chicken) is a fast food restaurant chain headquartered in Louisville, Kentucky, United States, which specializes in fried chicken and it is the world’s largest fried chicken chain. It primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. KFC was found by the Col.Harland Sanders and began selling fried chicken at his gas station in the year 1939 in Corbin, Kentucky which subsequently moved to a motel. He closed his business in the late 1940s when the Interstate highway through town. In the early 1950s, he began traveling the United States and met with Pete Harman in Salt Lake City, Utah, and in 1952 co-founded the Kentucky Fried Chicken restaurant is the first in the world (his first restaurant does not use that name).…

    • 1000 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Kinh Do

    • 1650 Words
    • 7 Pages

    Kinh Do Corporation (KDC) was established in 1993. It is the leading food company which was voted by consumers as the Vietnam high quality foods during 15 years. It owns distribution system spreading over 64 provinces and cities with 200 distributors and 120 retail outlets. Its products have been exported to 35 markets around the world such as USA, Europe, Australia, Middle East, Singapore, Taiwan ... with high export turnover. The registered head office is located at 141 Nguyen Du, Ben Thanh Ward, District 1, Ho Chi Minh City, Vietnam.…

    • 1650 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    MCDONALDS COMPETITORS

    • 3213 Words
    • 12 Pages

    McDonald’s and KFC are everybody’s favourite food trip destinations. When you like hamburgers, McDonald’s is always the top option. When you like fried chicken, KFC is always the first thing that comes to everyone’s mind. The reason for this is these companies claim of particular products that have became their trademark until now. The difference between McDonald’s and KFC is mainly the cuisine.…

    • 3213 Words
    • 12 Pages
    Good Essays
  • Powerful Essays

    To be the leading integrated food services group in the ASEAN region delivering consistent quality products and excellent customer-focused service.…

    • 1896 Words
    • 8 Pages
    Powerful Essays