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Company Profile of KFC

Discuss Company Profile of KFC within the Company Profiles & News !! forums, part of the Mirror View - Ebooks Links & Miscellenous Reading Material category; KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, ...



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Company Profile of KFC
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Pratik Kukreja
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Company Profile of KFC - May 10th, 2011

KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, in the United States. KFC has been a brand and operating segment, termed a concept[2] of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc.
KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside the USA, KFC offers beef based products such as hamburgers or kebabs, poutine[3], pork based products such as ribs and other regional fare.[citation needed]
The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually goes back to 1930. Although Sanders died in 1980, he remains an important part of the company's branding and advertisements, and "Colonel Sanders" or "The Colonel" is a metonym for the company itself. The company adopted KFC, an abbreviated form of its name, in 1991.[4] Starting in April 2007, the company began using its original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the U.S. as part of a new corporate re-branding program;[5][6] newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage. Additionally, Yum! continues to use the abbreviated name freely in its advertising.

KFC Holdings (Malaysia) Bhd is a Malaysia-based investment holding company. Through its subsidiaries, the Company operates in three segments, namely restaurants, integrated poultry and ancillary. Restaurants operates KFC restaurants. Its integrated poultry operations include breeder farms, hatchery, feed mills, poultry farms, contract broiler farming, and processing and further processing plants. Its ancillary support system encompasses sauce manufacturing, as well as bakery and commissary operations. As of December 31, 2010, the Company operated 515 KFC Restaurants across Malaysia, 77 stores in Singapore, nine in Brunei and seven in India. In 2010, the Company had a total of 39 RasaMas restaurants in Malaysia and three in Brunei and 49 Kedai Ayamas Restaurants across Malaysia. Among its subsidiaries there are: Ayamas Food Corporation Sdn Bhd, Ayamas Integrated Poultry Industry Sdn Bhd, Cilik Bistari Sdn Bhd, KFC India Holdings Sdn Bhd and Paramount Management Sdn Bhd.

International sales, particularly in Asia, continued to bolster company profits. In 1993, sales and profits of KFC outlets in Asia were growing at 30 percent a year. Average per store sales in Asia were $1.2 million, significantly higher than in the United States, where per store sales stood at $750,000. In addition, profit margins in Asia were double those in the United States. KFC enjoyed many advantages in Asia: fast food's association with the West made it a status symbol; the restaurants were generally more hygienic than vendor stalls; and chicken was a familiar taste to Asian palates. The company saw great potential in the region and stepped up construction of new outlets there. It planned to open 1,000 restaurants between 1993 and 1998.
Non-traditional service, often stemming from successful innovations instituted in the company's international operations, was seen as a way for KFC to enter new markets. Delivery, drive-thru, carry-out, and supermarket kiosks were up and running. Other outlets in testing were mall and office-building snack shops, mobile trailer units, satellite units, and self-contained kiosks designed for universities, stadiums, airports, and amusement parks. To move toward the twenty-first century, executives believed KFC had to change its image. "We want to be the chicken store," Cranor stressed in a 1991 Nation's Restaurant News. Cranor's goal was total concept transformation, moving KFC to a more contemporary role.
New product introductions were part of the company's plan to keep up with competitors. Having allowed Boston Market to grab a significant portion of the chicken market, KFC tried to catch up with the introduction of Rotisserie Gold Chicken. The company's new CEO, David Novak, also decided to test Colonel's Kitchen, a clear imitation of the Boston Market format. To counter McDonald's and Burger King's "value meals," KFC brought out the "Mega-Meal dinner": an entire rotisserie chicken, chicken nuggets, mashed potatoes, macaroni, cole slaw, biscuits, and a chocolate chip cake for $14.99. In 1995, KFC expanded the idea to "Mega-Meal-For-One," and decided to test chicken pot pie and chicken salad.
These moves gave a small boost to KFC's image, which had grown somewhat out-of-date, and to its bottom line. However, problems with the franchisees continued, and PepsiCo was not seeing the return on its assets that it saw with its beverage and snack food divisions. PepsiCo was having similar problems with its other restaurant subsidiaries, Taco Bell and Pizza Hut, and decided the drain of capital expenditure was not worth it.
In 1996 the company prepared to rid itself of its restaurant division by drawing together Pizza Hut, Taco Bell, and KFC. All operations were now overseen by a single senior manager, and most back office operations, including payroll, data processing, and accounts payable, were combined. In January 1997 the company announced plans to spin off this restaurant division, creating an independent publicly traded company called Tricon Global Restaurants, Inc. The formal plan, approved by the PepsiCo board of directors in August 1997, stipulated that each PepsiCo shareholder would receive one share of Tricon stock for every ten shares of PepsiCo stock owned. The plan also required Tricon to pay a one-time distribution of $4.5 billion at the time of the spinoff. If approved by the Securities and Exchange Commission, the spinoff would take place on October 6, 1997.
PepsiCo CEO Roger Enrico explained the move: "Our goal in taking these steps is to dramatically sharpen PepsiCo's focus. Our restaurant business has tremendous financial strength and a very bright future. However, given the distinctly different dynamics of restaurants and packaged goods, we believe all our businesses can better flourish with two separate and distinct managements and corporate structures." KFC and its franchisees did settle their contract disputes; according to a press release, "the crux of the agreement revolves around KFC franchisees receiving permanent territorial protection. In turn, KFC Corporation will have more direct influence over certain national advertising and public relations activities." Still KFC faced the need to rennovate its restaurant buildings, and also faced stiff competition from Boston Market, Burger King, and McDonald's, so it remained to be seen if the new parent company would refresh KFC's image and profits.

Beta: 0.28
Market Cap (Mil.): RM2,950.95
Shares Outstanding (Mil.): 793.27
Annual Dividend: 0.08
Yield (%): 2.15
KFCK.KL Industry Sector
P/E (TTM): 18.86 25.45 18.33
EPS (TTM): 20.00 -- --
ROI: 15.48 3.70 1.56
ROE: 17.62 5.39 2.40

Wholly Owned Subsidiary of PepsiCo, Inc.
Incorporated: 1955 as Kentucky Fried Chicken
Employees: 160,000
Sales: $6.4 billion (1996)
SICs: 5812 Eating Places

Name Age Since Current Position
bin Abu Kassim, Kamaruzzaman 47 2011 Non-Independent Non-Executive Chairman of the Board
bin Md Ali, Jamaludin 53 2006 Managing Director, Chief Executive Officer, Executive Director
bin Mohamad, Ahamad 57 2006 Non-Independent Non-Executive Deputy Chairman of the Board
Bin Alwi, Mohammad 2008 Director - Finance and Human Resources
Au, Alan 2008 Senior Vice President - Finance, MIS & Corporate Planning
bin Mustaman, Mohd Zam 48 2008 Company Secretary, Director - Legal, Corporate Services and Properties
Bin Abu Bakar, Idham Jihadi 2006 Company Secretary
Binti Abdul Rahman, Azizah 2008 Director - Integrated Poultry & Food Manufacturing
Wong, S. K. 2008 Director - KFC & Pizza Hut
bin Ismail, Ismee 46 2009 Non-Independent Non-Executive Director
binti Sheikh Bakir, Sa'diah 59 2010 Non-Independent Non-Executive Director
bin Baba, Hassim 65 2005 Independent Non-Executive Director
Kua, Hwee Sim 58 2006 Independent Non-Executive Director
bin Awang, Yahya 61 2008 Independent Non-Executive Director

P.O. Box 32070
Louisville, Kentucky 40232

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Business Education
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Re: Company Profile of KFC - June 17th, 2015

Fast food will make you sick in 2 minutes. After Maggi it's KFC to scrutinize. Instead of Chicken the serve rats and the main part is that they have already drowning below their profit level. KFC recently forced to shut down their 4 outlet but after this news of serving rats instead of chicken it looks like they will be ban in India after Maggi.

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