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Kfc Business Analysis

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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

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