1. McDonald’s
versus
KFC
By: Mohammadreza Fallah, Yawei He,
Kanat Kairatov, Archie Nelson

2. History
KFC(Kentucky Fried Chicken):
• Founded in 1930
• By Colonel Harland Sanders in Kentucky
• Franchises restuarant
• A brand of Yum! Brands (original PepsiCo)

3. History
McDonald’s:
• Founded in 1940
• By Dick and Mac
MacDonald in California
• Target market is children
and young people

4. Worldwide Market Share in the
fast food industry
2%
19%
Mc
Do
n
9% KFC
9%
1%
1%
2%
ald
’
s
57%
O her s
t
Bur ger Ki ng
C SI
O
Paner a Br ead
Subw
ay
KFC
M onal d' s
cD
W
endy' s

5. Comparison
How many countries they entered into?
140
120
120
90
100
80
60
40
20
0
KFC
M
cDonal d' s

6. Comparison
Restaurant numbers worldwide
35000
31,000
30000
25000
20000
15000
10000
11,000
5000
0
KFC
M
cDonal d' s

7. Comparison
Company’s market value
45
40
35
$40.6bn
30
25
20
15
系列1
$11.2bn
10
5
0
KFC（Yum ）
!
M
cDonal d' s

8. Internal
evti s op
i
Weakness
Opportunities
Threats
negative
Strengths
external

9. SWOT Analysis
Common Strengths:
• Fast
• Good location
• Good services
• Good environment
• Globalization
• Brand

10. SWOT Analysis
• Strengths of McDonald’s :
• Higher income and more capital
McDonald’s
Yum!
(KFC, Pizza Hut
and Taco Bell)

11. SWOT Analysis
• High-quality raw material (SQI)
• Standard products
• Welcomed by children

12. SWOT Analysis
Strengths of KFC:
• Localization
• Various products
• Large products portfolio & long product
life cycle
• Larger target market 6-65

13. SWOT Analysis
Weaknesses
KFC
Unhealthy
McDonald’s
Unhealthy
Poor food quality
Changeless on menu
worldwide
Lack of focus on R&D
(research & development)
Product failure
Slow speed of growth
Taste of food is not good

14. The taste of hamburgers

15. SWOT Analysis
Opportunities:
• International markets:
Developing countries
• Small middle size cities
• Order online or by telephone
• New products
• Business alliance

16. SWOT Analysis
Key Threats ： Competition
• Restaurants are increasingly advertising low
cost burgers on their menus …If you're not in a
hurry, which one would you choose? (for
example The Wilmslow Arms opposite my
university halls offers a great burger for five
pounds)
• Burger King is increasingly competing with both
McDonald's and KFC with a market share of 9%.

17. SWOT Analysis
Key Threats: Change of consumers’ lifestyle:
• Social changes - Government, consumer groups
encouraging balanced meals, 5 a day fruit and
vegetables
• Health professionals and consumer activists accuse
McDonald's of contributing to the country’s health issue
of high cholesterol, heart attacks, diabetes, and obesity
• The film “Super-size Me” highlighted the dangers that
excessive fast food consumption can have on a persons
health

18. Solutions
For McDonald’s:
Improve the taste of food
Enlarge the narrow product portfolio
Increase target market
For KFC:
Improve the quality of food
Increase the restaurant numbers

19. Reference
•
•
•
•
•
•
•
KFC (2012) History [Online]< http://www.kfc.co.uk/about-kfc/kfc-history >, [Date accessed
25/04/2012]
McDonald’s (2012) History[Online]
<http://www.mcdonalds.co.uk/ukhome/Aboutus/Development.html >, [Date accessed 25/04/2012]
Markets.ft (2012) markets data of McDonald’s [Online] <
http://markets.ft.com/Research/Markets/Tearsheets/Financials?s=MCD:NYQ >, [Date accessed
27/04/2012]
Markets.ft (2012) markets data of KFC [Online] <
http://markets.ft.com/Research/Markets/Tearsheets/Financials?s=YUM:NYQ >, [Date accessed
27/04/2012]
Yahoo (2012) Consumers reports of burgers [Online] <
http://shopping.yahoo.com/articles/yshoppingarticles/428/best-burgers/ >, [Date accessed
27/04/2012]
Newscn (2005) KFC dressing contains “”Tonyred 1 [Online] <
http://newscn.biz/Export/News6482.pdf >, [Date accessed 25/04/2012]
MSN (2012) McDonald's meets expectations as profit jumps [Online] <
http://www.msnbc.msn.com/id/47114485/ns/business-us_business/ >, [Date accessed
25/04/2012]