Profitability Analysis: KFC Vs McDonalds
JUNJIAN BAO
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Accounting
Faculty Research Mentor: Huaibing Yu
Abstract:
This study provides a comparative profitability analysis of two leading global fast food chains, KFC and McDonald's, focusing on their financial performance, operational efficiency and market positioning. The study examines key financial metrics such as profitability, return on investment, revenue growth and cost management strategies of the two companies over a specified period. Combining financial statement analysis and profitability ratios, the study aims to reveal which company has maintained stronger financial performance and the underlying factors driving their respective success.The results of the study show that while both KFC and McDonald's have demonstrated stable profitability, McDonald's has maintained a higher level of profitability in terms of return on equity and operating margins. However, KFC shows strong growth potential in emerging markets with higher revenue growth rates in certain regions.This study helps to understand the competitive dynamics of the fast food industry and provides insights into how KFC and McDonald's manage their operations to maximize profitability. The implications of this study are important for investors, business strategists, and academics, highlighting different ways to maintain profitability in a competitive and saturated market.