Shares of Collins Foods Ltd (ASX:CKF) rose sharply on Tuesday after the firm, which is Australia’s largest independent franchisee of fried chicken chain KFC, posted upbeat sales data and reaffirmed its annual guidance.
Collins Foods rose as much as 9% to A$10.79, outpacing a 0.3% drop in the ASX 200 index.
Collins Foods said its total company sales grew 6.7% year-on-year in the 18 weeks to August 31, underpinned by sales growth at KFC operations across Australia and Europe.
The company reaffirmed its fiscal 2026 guidance, targeting year-on-year net profit growth in the low-to-mid-teens.
Collins Foods said new restaurant openings remained on track, including a new store in Germany under a deal with KFC owner Yum! Brands Inc (NYSE:YUM) to increase its presence in Europe.
Same-store-sales growth in Germany accelerated sharply since April, Collins Foods said, rising 5.8% year-on-year as the company moved to increase its presence in the country.
The company had earlier this year said it will exit the underperforming Taco Bell franchisee business and instead open more KFC outlets in Germany.
The company runs about 285 KFC outlets in Australia, 16 outlets in Germany, and 58 outlets in the Netherlands. It plans to open 70 new outlets in Germany in the next five years.
Source :
https://www.investing.com/news/stock-market-news/australian-kfc-franchisee-collins-foods-surges-on-upbeat-sales-4218356
