Financial analysis of a company and the competitor
KFC vs. McDonald’s
Module 2 Environment - Group D1 - 19th of December 2019
, Table of content
1.3 The value drivers of KFC...............................................................................................................5
Figure 2...................................................................................................................................................7
2.2 Income statement......................................................................................................................11
4.2 The cashflow of McDonald’s.......................................................................................................25
6. Conclusion: The financial strengths and weaknesses.......................................................................29
Reference list........................................................................................................................................30
1. Information about KFC..................................................................................................................3
1.2 The media and news about KFC....................................................................................................4
1.3 The value drivers of KFC...............................................................................................................5
2. Financial analysis KFC and McDonald’s..........................................................................................6
2.1 5-year record…………………………………………………………………………………………………………………………….6
2.2 Income statement......................................................................................................................10
2.3 Balance sheet.............................................................................................................................12
2.4 Ratio analysis 5 groups...............................................................................................................15
2.4.2 Solvency ratios ..................................................................................................................16
2.4.3 Profitability ratios .............................................................................................................17
2.4.4 Activity ratios ....................................................................................................................18
2.4.5 Operating ratios...................................................................................................................19
3. Business Model Canvas...............................................................................................................20
4. Cash flow statement....................................................................................................................21
4.1 The cashflow statement of KFC………………………………………………………………………………………………21
4.2 The cashflow of McDonald’s.......................................................................................................22
5. Du Pont Schedule........................................................................................................................23
6. Conclusion: The financial strengths and weaknesses...................................................................24
Reference list..................................................................................................................................25
, 1. Information about KFC
1.1 The company history of KFC
The history of a company is an important aspect, since this says a lot about the company and
how it grown and evolved over the years. The company history of Kentucky Fried Chicken
will be described in a chronologic order.
Kentucky Fried Chicken is set up by Colonel Harland Sanders in 1936 in Corbin, Kentucky. It
started as a small kitchen in a gas fuel station and it evolved into the largest chicken fast
food chain in the world. The gas station was opened by Colonel Harland Sanders and the
chicken that he made was becoming popular. When this was happening, Colonel Sanders
decided to close the gas station and open a restaurant based on the recipes. This restaurant
was very busy and many people liked the chicken. It was so popular that in 1952 a franchise
has opened in South Salt Lake in Utah [CITATION Int19 \l 1043 ].
Furthermore, in 1964 Colonel Sanders sold the company Kentucky Fried Chicken to a group
of investors. The leaders of the group were John Brown and Jack Massey and Colonel
Sanders sold the company for two million US dollars. There was a contract made about this
and in this contract it was stated that Colonel Sanders got a lifetime salary. In addition to this
Colonel Sanders was the quality controller and the trademark of Kentucky fried chicken
according to the contract. In 1970 the chain had 3000 restaurants in 48 different countries.
Kentucky Fried Chicken grew out in a very large fast food chain in a relatively short amount
of time [CITATION com16 \l 1043 ].
Kentucky Fried Chicken was a brand of PepsiCo and in 1997 it was spun off and was known
as Tricon Global Restaurants Inc. together with Pizza Hut and Taco Bell. In 2002 this name
was changed into Yum! Brands. The highest revenue nowadays is in China and Kentucky
Fried Chicken want to expand in Asia in the future. Kentucky Fried Chicken has more than
21,000 restaurants in 130 different countries in the world. In conclusion, it can be said that
this small restaurant of Colonel Harland Sanders grow out to a very large cooperation
[CITATION Fas17 \l 1043 ].
KFC vs. McDonald’s
Module 2 Environment - Group D1 - 19th of December 2019
, Table of content
1.3 The value drivers of KFC...............................................................................................................5
Figure 2...................................................................................................................................................7
2.2 Income statement......................................................................................................................11
4.2 The cashflow of McDonald’s.......................................................................................................25
6. Conclusion: The financial strengths and weaknesses.......................................................................29
Reference list........................................................................................................................................30
1. Information about KFC..................................................................................................................3
1.2 The media and news about KFC....................................................................................................4
1.3 The value drivers of KFC...............................................................................................................5
2. Financial analysis KFC and McDonald’s..........................................................................................6
2.1 5-year record…………………………………………………………………………………………………………………………….6
2.2 Income statement......................................................................................................................10
2.3 Balance sheet.............................................................................................................................12
2.4 Ratio analysis 5 groups...............................................................................................................15
2.4.2 Solvency ratios ..................................................................................................................16
2.4.3 Profitability ratios .............................................................................................................17
2.4.4 Activity ratios ....................................................................................................................18
2.4.5 Operating ratios...................................................................................................................19
3. Business Model Canvas...............................................................................................................20
4. Cash flow statement....................................................................................................................21
4.1 The cashflow statement of KFC………………………………………………………………………………………………21
4.2 The cashflow of McDonald’s.......................................................................................................22
5. Du Pont Schedule........................................................................................................................23
6. Conclusion: The financial strengths and weaknesses...................................................................24
Reference list..................................................................................................................................25
, 1. Information about KFC
1.1 The company history of KFC
The history of a company is an important aspect, since this says a lot about the company and
how it grown and evolved over the years. The company history of Kentucky Fried Chicken
will be described in a chronologic order.
Kentucky Fried Chicken is set up by Colonel Harland Sanders in 1936 in Corbin, Kentucky. It
started as a small kitchen in a gas fuel station and it evolved into the largest chicken fast
food chain in the world. The gas station was opened by Colonel Harland Sanders and the
chicken that he made was becoming popular. When this was happening, Colonel Sanders
decided to close the gas station and open a restaurant based on the recipes. This restaurant
was very busy and many people liked the chicken. It was so popular that in 1952 a franchise
has opened in South Salt Lake in Utah [CITATION Int19 \l 1043 ].
Furthermore, in 1964 Colonel Sanders sold the company Kentucky Fried Chicken to a group
of investors. The leaders of the group were John Brown and Jack Massey and Colonel
Sanders sold the company for two million US dollars. There was a contract made about this
and in this contract it was stated that Colonel Sanders got a lifetime salary. In addition to this
Colonel Sanders was the quality controller and the trademark of Kentucky fried chicken
according to the contract. In 1970 the chain had 3000 restaurants in 48 different countries.
Kentucky Fried Chicken grew out in a very large fast food chain in a relatively short amount
of time [CITATION com16 \l 1043 ].
Kentucky Fried Chicken was a brand of PepsiCo and in 1997 it was spun off and was known
as Tricon Global Restaurants Inc. together with Pizza Hut and Taco Bell. In 2002 this name
was changed into Yum! Brands. The highest revenue nowadays is in China and Kentucky
Fried Chicken want to expand in Asia in the future. Kentucky Fried Chicken has more than
21,000 restaurants in 130 different countries in the world. In conclusion, it can be said that
this small restaurant of Colonel Harland Sanders grow out to a very large cooperation
[CITATION Fas17 \l 1043 ].
