Although KFC had made dramatic progress, growth was limited by restricted expansion capital at Heublien. Most of the profits generated by KFC were being used to revive Heublien’s spirits operations, which were themselves facing flat sales and increased competition. By 1982, KFC was receiving only US$50 million per year in expansion funds compared with the US$400 million being spent by hamburger giant McDonald's. KFC also had one of the lowest ratios of company-owned to franchisee stores in the industry. Many franchise stores were slow to upgrade facilities and it was understood that major investments would be required to assure the integrity of the overall KFC network.