KFC vs McDonald's: Revenue, Profit and Business Model
KFC reported $3.5B of revenue in FY2025 and — of net income. McDonald's reported $26.9B of revenue in FY2025 and $8.6B of net income.
Latest financial snapshot
KFC
- Latest revenue
- $3.5B (FY2025)
- Net income
- —
- Net margin
- 0.0%
- Revenue growth
- +11.9% a year, FY2023–FY2025
McDonald's
- Latest revenue
- $26.9B (FY2025)
- Net income
- $8.6B
- Net margin
- 31.9%
- Revenue growth
- +1.0% a year, FY2016–FY2025
Financial summary
KFC
Yum! Brands reports KFC as a separate division. KFC Division revenue rose from $2.83 billion in 2023 to $3.10 billion in 2024 and $3.54 billion in 2025, when system sales grew 6% excluding currency and the 53rd week, and core operating profit grew 10%. In Q2 2026 the division posted $924 million in revenue (up 9%), 6% system sales growth, 2% same-store sales growth and 7% unit growth. Yum does not break out KFC net income.
McDonald's
McDonald's corporate revenue ($26.885 billion in 2025, up 3.7%) is a fraction of the roughly $139 billion that customers spend across the system, because franchised restaurant sales are not booked as company revenue. What the company does book is mostly franchise rent and royalties, which explains net income of $8.563 billion in 2025 and operating margins well above typical restaurant operators. In Q2 2026, revenue rose 4% (2% in constant currency) to about $7.1 billion, diluted EPS was $3.32 ($3.38 adjusted), and systemwide sales grew 5% to $37 billion. The company returns most free cash flow through dividends, which it has raised every year since 1976, and share buybacks.
Revenue and profit by year
KFC
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $3.5B | — | 0.0% | +14.3% | Source |
| FY2024 | $3.1B | — | 0.0% | +9.5% | Source |
| FY2023 | $2.8B | — | 0.0% | — | Source |
McDonald's
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $26.9B | $8.6B | 31.9% | +3.7% | Source |
| FY2024 | $25.9B | $8.2B | 31.7% | +1.7% | Source |
| FY2023 | $25.5B | $8.5B | 33.2% | +10.0% | Source |
| FY2022 | $23.2B | $6.2B | 26.6% | -0.2% | Source |
| FY2021 | $23.2B | $7.5B | 32.5% | +20.9% | Source |
| FY2020 | $19.2B | $4.7B | 24.6% | -10.1% | Source |
| FY2019 | $21.4B | $6B | 28.2% | +0.5% | Source |
| FY2018 | $21.3B | $5.9B | 27.9% | -6.8% | Source |
| FY2017 | $22.8B | $5.2B | 22.8% | -7.3% | Source |
| FY2016 | $24.6B | $4.7B | 19.0% | — | Source |
Where the revenue comes from
KFC
- Franchise and property revenues
Not disclosed
Initial fees, ongoing royalties on franchisee sales and rent from leased properties.
- Yum China license fees
Not disclosed
3% license fee on KFC sales in mainland China paid by Yum China.
- Company-operated restaurant sales
Not disclosed
Sales from the small share of KFC restaurants owned by Yum.
- Franchise contributions for advertising and other services
Not disclosed
Advertising fund contributions and technology fees passed through from franchisees.
McDonald's
- Franchise rent and royalties~45%
Franchise rent and royalties
- Company-operated restaurants~25%
Company-operated restaurants
- Licensing and delivery economics~15%
Licensing and delivery economics
Business model and strategy
KFC
How it makes money
KFC is a franchisor. Independent operators and large master franchisees such as Yum China, AmRest, Collins Foods and Devyani International build and run the restaurants, and KFC collects initial fees, ongoing royalties (typically a percentage of sales), advertising contributions and some rent, plus sales from a small number of company-owned stores.
Growth strategy
Growth runs on unit openings. KFC opened close to 3,000 gross new restaurants in 2025 and kept unit growth at 7% in mid-2026, led by franchise partners in China, India, Turkey, Africa and the Middle East. Digital ordering is the second lever: Yum's digital sales mix passed 60% in 2026. In the U.S., KFC is testing new formats and a menu built around tenders and sauces to win back younger diners.
Competitive advantage
KFC's edge is reach. With nearly 34,000 restaurants in about 149 countries and territories, it is the only chicken chain with true global scale, and it opened close to 3,000 gross new units in 2025.
McDonald's
How it makes money
About 95% of McDonald's restaurants are owned and operated by franchisees or developmental licensees. The corporation makes money in three main ways: (1) rent, because it owns or leases the land and buildings at many franchised sites and charges franchisees rent, often tied to a percentage of sales; (2) royalties, a percentage of each restaurant's monthly sales;
Growth strategy
McDonald's growth plan, branded Accelerating the Arches, rests on marketing, core menu (burgers, chicken, coffee), and the 3 D's: digital, delivery, and drive-thru. The company targets roughly 50,000 restaurants worldwide by the end of 2027, with China, other developmental licensed markets, and the U.S. contributing the largest number of openings.
Competitive advantage
McDonald's advantage is scale that rivals cannot easily copy: more than 45,000 restaurants, control of prime real estate at many franchised sites, a long-tenured franchisee base that funds most store capital, and a supply chain that buys beef, potatoes, chicken, and packaging at volumes few chains match.
Questions about KFC vs McDonald's
Which company has higher revenue — KFC or McDonald's Corporation?
KFC reported $3.5B (FY2025), while McDonald's Corporation reported $26.9B (FY2025). By last reported revenue, McDonald's Corporation is the larger business, with KFC reporting a smaller revenue base.
What is the market cap of KFC vs McDonald's Corporation?
McDonald's Corporation has a market capitalisation of $175.7B. A public market cap figure for KFC was not available (it may be privately held).
Which is more financially efficient — KFC or McDonald's Corporation?
McDonald's Corporation generates $179k / employee in revenue per employee. A comparable figure for KFC requires matching employee and revenue data from the same reporting period.
How do KFC and McDonald's Corporation make money?
KFC and McDonald's Corporation generate revenue in fundamentally different ways. KFC: KFC is a franchisor. McDonald's Corporation: About 95% of McDonald's restaurants are owned and operated by franchisees or developmental licensees.
Is KFC bigger than McDonald's Corporation?
By last reported revenue, McDonald's Corporation ($26.9B (FY2025)) is the larger company compared to KFC ($3.5B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the KFC vs McDonald's overview