KFC Founded on September 24, 1952, United States. Presently, KFC is among the best chicken restaurants recognized globally. Colonel Harland Sanders, the founder of KFC, initially used to sell fried chicken from his roadside restaurant in Kentucky, USA. KFC has its branches in about 150 countries and 22622 outlets making it the 4th largest fast-food restaurant in the world. KFC is the second largest fast-food restaurant after MacDonald's. It was one of the 1st American Fast- Food chains to expand Internationally. KFC is operated partly as equity, and partly as a franchised model with the reports as late as December 2018, 98% of its restaurants are operating as franchises. With the main focus being on fried chicken, the company also sells chicken pieces, wraps, salads, and sandwiches. KFC is one of the best-established brands in the Western Quick Service Restaurants. It has earned a revenue of about US$27.9 billion as of 2020. In 1964, Sanders sold KFC to a group of investors led by John Y. Brown Jr. and Jack C. Massey for US$2 million (around US$17 million in 2020). The chain had reached 3,000 outlets in 48 countries by 1970. In July 1971, Brown sold the company to the Connecticut-based Heublein, a packaged food and drinks corporation, for US$285 million (around US$1.8 billion in 2020). As of 2022, there are 24,999 KFC outlets in 147 countries and territories in the world. The first KFC franchise opened in the US in 1952 and the first overseas franchise was established in the UK in May 1965. The major markets for KFC include China (7166 stores), US (3943 stores), Japan (1140 stores), Russia (979 stores), South Africa (955 stores), UK (928 stores), Thailand (853 stores), Malaysia (743 stores), Indonesia (742 stores), Australia (699 stores), and Canada (601 stores).

1. KFC
Presented By:
Wasif Ali Syed (18221554-001)
Abdul Rahim (18221554-012)

2. Introduction and History
• KFC Founded on September 24, 1952, United States. Presently, KFC is among the best chicken
restaurants recognized globally. Colonel Harland Sanders, the founder of KFC, initially used to sell
fried chicken from his roadside restaurant in Kentucky, USA. KFC has its branches in about 150
countries and 22622 outlets making it the 4th largest fast-food restaurant in the world. KFC is the
second largest fast-food restaurant after MacDonald's. It was one of the 1st American Fast- Food
chains to expand Internationally. KFC is operated partly as equity, and partly as a franchised model
with the reports as late as December 2018, 98% of its restaurants are operating as franchises. With the
main focus being on fried chicken, the company also sells chicken pieces, wraps, salads, and
sandwiches. KFC is one of the best-established brands in the Western Quick Service Restaurants. It
has earned a revenue of about US$27.9 billion as of 2020.

3. Sale and global expansion
• In 1964, Sanders sold KFC to a group of investors led by John Y. Brown
Jr. and Jack C. Massey for US$2 million (around US$17 million in 2020).
• The chain had reached 3,000 outlets in 48 countries by 1970. In July 1971,
Brown sold the company to the Connecticut-based Heublein, a packaged
food and drinks corporation, for US$285 million (around US$1.8 billion in
2020).

4. Cont.…
• As of 2022, there are 24,999 KFC outlets in 147 countries and territories in
the world.
• The first KFC franchise opened in the US in 1952 and the first overseas
franchise was established in the UK in May 1965.
• The major markets for KFC include China (7166 stores), US (3943 stores),
Japan (1140 stores), Russia (979 stores), South Africa (955 stores), UK (928
stores), Thailand (853 stores), Malaysia (743 stores), Indonesia (742 stores),
Australia (699 stores), and Canada (601 stores).

5. KFC Pakistan
• In Pakistan the first restaurant was established in Karachi in 1997. Currently,
it operates in 68 locations across Pakistan with 5,800 employees.

6. Financial Data
Item/Year 2019 2018 2017
Current Assets 15,635,927 15,664,181 13,800,437
Current Liabilities 9,031,197 9,365,981 8,040,503
Inventories 2,274,748 2,189,041 1,863,081
Cash 4,493,594 2,086,668 3,779,199
Receivables 4,819,042 6,816,728 4,019,250
Total Assets 23,777,212 23,542,631 20,669,136
Total Liabilities 9,561,779 10,328,015 9,114,572
Total Equity 14,211,339 13,209,115 11,554,564
Sales 24,674,004 25,716,165 23,497,760
Cost of Goods Sold 17,567,841 17,944,952 15,881,985
Net Income 1,562,779 1,762,520 1,869,780

7. Liquidity Ratios of (KFC LTD)
Liquidity ratio analysis allows a company to measure its ability in managing
short-term obligations. It mainly highlights if an entity can offset its liabilities
should they arise. In this report, we apply the Current ratio, Cash ratio, and
Quick ratio to analyses if KFC Inc. has the necessary liquidity.

8. Liquidity Ratios
Ratio/Year 2019 2018 2017
Current Ratio 1.73 1.67 1.72
Quick Ratio 0.73 0.67 0.72
Cash Ratio 0.50 0.22 0.47

9. Debt Ratio
• This is a Financial leverage ratio used to measure a portion of a company’s
resources concerning assets that are funded by. In the 3 years, the company is
managing its debt ratio, with a decreasing trend at the lowest recorded in
2019. This low ratio implies that KFC is more stable and has longevity
potentials since it has a lower overall debt.
Ratio/Year 2019 2018 2017
Debt Ratio 0.40 0.44 0.44

10. Conclusion
• KFC performed better in 2017, as compared to 2018 and 2019. However, the
company is more stable and has a better return on investment. The company
showed concerns in areas of cash flow, debt, and capital debt even though it
has higher growth rates and shows an upward trend. The company has as
attracted a huge clientele, due to its exemplary performance and efficiencies
of its services, KFC has managed to adopt an attractive workforce base in
most of its outlets, which has improved efficiency and management in its
services