Analysis on KFC Holding Berhad

Financial report
As we know, KFC is a famous fast food restaurant in Malaysia. But KFC Holding Berhad's business is not only KFC restaurants. KFC Holding Berhad's business as below:-

1) KFC restaurants
2) Rasamas restaurants
3) Ayamas retail

Attached here the financial reports of KFC Holding Berhad.

From the report above, we can see that KFCH is negative profit on 2005. This figure has make me curious. Everyone know that KFC restaurant always full of people. How it's profit will be negative?
When i check the numbers of Rasamas retaurant and Kedai Ayamas then i come out a conclusion.

Number of Rasamas retaurants reduce from 31(2004) to 14(2005) that means 17 of the Rasamas retaurants in 2005 was not run well and end up to be shut down.

Number of Kedai Ayamas and Ayams Depots is keep reducing too.

KFCH has lost a lot when it try to expand Rasamas and Ayamas. After KFCH reduce the branches of Ayamas and Rasamas, it has a big increase in it's profit in 2006. Therefore i believe that KFCH will have a stable growth in future.

Competitors of KFC
From few fast food restaurant, only one can really competive with KFC in Malaysia which is Mcdonald. How many Mcdonald restaurants in Malaysia? As on 31.12.2007, only 177 Mcdonald in Malaysia since it's 1st restaurant on 1982. That means average 7 outlets opened per year compare to KFC is average 11 outlets opened per year.

In Malaysia, KFC is top fast food restaurant.