KFC,Ltd. (3420) AI Stock Analysis

• Market Cap: ¥10.70B
• Dividend Yield: 3.44%
• Average Volume (3M): 3.20K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.35
• Revenue Growth: 4.00%
• EPS Growth: -15.26%
• Country: JP
• Employees: 312
• Sector: Industrials
• Sector Strength: 83
• Industry: Conglomerates
• EPS (TTM): 54.46
• Shares Outstanding: 7,378,050
• 10 Day Avg. Volume: 5,660
• 30 Day Avg. Volume: 3,203
• PEG Ratio: -0.21
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,611.00 ▲(10.72%Upside)

KFC, Ltd. exhibits strong financial performance with robust profitability and equity management, despite challenges in revenue and cash flow. The stock's technical indicators suggest bullish momentum, though caution is warranted due to potential overbought conditions. Its valuation is reasonable with an attractive dividend yield.

KFC,Ltd. Business Overview & Revenue Model

Company Description

KFC, Ltd. (3420) is a leading global fast-food restaurant chain, specializing in fried chicken and operating in the quick service restaurant sector. Originally founded in the United States, KFC is now a subsidiary of Yum! Brands, Inc., and has a significant presence worldwide with thousands of outlets in various countries. The company's core offerings include its signature fried chicken, chicken sandwiches, and a variety of side dishes, catering to diverse consumer preferences.

How the Company Makes Money

KFC, Ltd. primarily generates revenue through the sale of food and beverages at its company-owned and franchised restaurants. The company operates a franchise model, where a significant portion of its income comes from franchise fees and royalties paid by franchisees. These fees typically include an initial franchise fee, ongoing royalty fees based on a percentage of sales, and advertising contributions. Additionally, KFC benefits from its brand recognition and marketing partnerships, which help drive traffic and sales at its locations. The company also engages in strategic partnerships and collaborations to expand its menu offerings and market reach, further enhancing its revenue streams.

KFC,Ltd. Financial Statement Overview

Summary

KFC, Ltd. demonstrates solid financial health with strong profitability and effective equity management. However, recent declines in revenue and cash flow generation pose challenges. The company's ability to maintain profitability amidst revenue pressures is notable, yet attention to cash flow efficiency is necessary for sustained growth.

Income Statement

KFC,Ltd. shows a volatile revenue trend with recent declines, yet maintains strong gross and net profit margins. The recent annual revenue growth was negative, indicating potential market challenges. Despite this, the company sustains a competitive EBIT margin, signaling operational efficiency.

Balance Sheet

The company exhibits a robust balance sheet with a low debt-to-equity ratio, reflecting prudent leverage management. The equity ratio is healthy, supporting financial stability. Return on equity has shown some fluctuations but remains moderately strong, indicating effective use of equity capital.

Cash Flow

Free cash flow has been inconsistent, with a recent decline indicating cash generation challenges. The operating cash flow to net income ratio is concerning, showing inefficiencies in converting income to cash. However, the company has managed its capital expenditures prudently.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
24.83B	26.07B	25.07B	22.63B	25.96B	27.80B
	Gross Profit
6.60B	6.82B	6.87B	6.16B	7.48B	8.13B
	EBIT
1.19B	1.36B	1.62B	1.28B	2.49B	3.30B
	EBITDA
1.78B	1.76B	1.96B	1.76B	2.79B	3.58B
	Net Income Common Stockholders
986.54M	997.44M	1.18B	1.05B	1.84B	2.31B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.76B	4.80B	5.56B	5.99B	3.73B	4.38B
	Total Assets
29.45B	28.84B	29.62B	26.19B	26.21B	26.56B
	Total Debt
1.40B	500.87M	496.89M	501.03M	505.23M	601.72M
	Net Debt
-2.26B	-3.10B	-3.96B	-2.69B	-2.52B	-2.58B
	Total Liabilities
8.64B	7.59B	9.00B	6.63B	7.05B	8.45B
	Stockholders Equity
20.80B	21.25B	20.62B	19.56B	19.14B	18.10B
Cash Flow		Free Cash Flow
0.00	-240.47M	-152.66M	3.09B	616.67M	376.62M
	Operating Cash Flow
0.00	-85.46M	3.51M	3.75B	1.04B	583.97M
	Investing Cash Flow
0.00	-429.00M	-263.90M	-958.12M	-1.02B	-465.91M
	Financing Cash Flow
0.00	-446.25M	-371.54M	-520.90M	-693.60M	-612.16M

KFC,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1455.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3420, the sentiment is Positive. The current price of 1455 is above the 20-day moving average (MA) of 1385.45, above the 50-day MA of 1346.14, and above the 200-day MA of 1261.13, indicating a bullish trend. The MACD of 31.94 indicates Negative momentum. The RSI at 81.43 is Negative, neither overbought nor oversold. The STOCH value of 64.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3420.

KFC,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6554	78 Outperform	¥10.46B	12.37		2.59%	19.85%	78.11%
7795	73 Outperform	¥7.56B	10.57		4.60%	0.83%	-21.02%
7670	72 Outperform	¥9.01B	5.08		3.96%	-2.30%	16.50%
3420	71 Outperform	¥10.70B	10.73		3.44%	4.00%	-15.26%
7490	70 Outperform	¥6.82B	11.09		3.13%	0.78%	106.93%
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%
5721	65 Neutral	¥48.42B	947.75		―	-24.20%	-82.44%