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Is McDonalds making more than Kentucky Fried Chicken (KFC)?

There are some battles that seem to go on and on as long as we are living. We have Samsung vs Apple, Ford vs GM, Coke vs Pepsi, Marvell vs DC, UPS vs FedEx, Nike vs Rebook/Addidas, Airbus vs Boeing, and then we have the food chains competing such as McDonalds and KFC. The list goes on and on and everyone has his or her own criteria of measuring a business. Some goes for performance and fan following while others prefer stats and who is making more money. You might be a fan of MCD or you may prefer KFC but here we are not going to talk about the food. In fact, we will take a look at their financial report and answer a popular question that is McDonalds making more than KFC?

KFC Income Stats

KFC is counted as one of the most popular food chain all over the globe. The company looks to possess a stable client base as per their income report. In 2014, the company made sales that accounted for $19.33 billion which jumped up to $25.21 billion in 2015. Since then, the company seems to have struck a point as they made $25.21B in 2015 and $25.06b in 2016. 2017 was a year when they faced a decline in sales as they went to $23.5 billion in a year.

Analyzing the 2017 sales, the company sold goods that accounted for $23.5 billion. The cost of goods that they sold, including all the ups and downs and payments, accounted for $16.13 billion. As a result, they managed to make a hefty profit of $7.37 billion in 2017 fiscal calendar year.

McDonalds Income Stats

McDonalds is the first choice for many people when we talk about the fast food and has dominated the market for a very long time. Starting the stats from 2014, the company made sales of $27.44B which were even higher in previous year. Since then, the company seems to have faced a downfall as many other fast food chains are entering the market and competition is getting tougher with each company making less as more of them are serving people now in the industry. They made $25.41B, $24.62B, and $22.82B in the years 2015, 2016, and 2017, respectively.

Analyzing their sales of 2017, McDonalds sold items that made them $22.82B. The amount they paid for the goods, i.e. total cost that company paid in the calendar year, was only $12.2B. As a result, they made a profit of $10.62B.

So, who is making more?

Well, from the performance of last calendar year, we come to a conclusion that KFC is generating more money with the sales as they made $23.5B as compared to McDonalds where the sales only accounted for $22.82B. However, considering the factor that KFC is paying higher in terms of ‘costs of goods sold including D&A,’ their profit is $7.37B only which is much smaller than what McDonalds is generating i.e. $10.62B as per calendar year of 2017.