Down 18% in a Year: What Has Happened to Collins Foods Ltd (ASX:CKF)?

Sonal Goyal

22 October 2026 10:29 PM AEDT

Down 18% in a Year: What Has Happened to Collins Foods Ltd (ASX:CKF)?

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Key highlights

Collins Foods Ltd (ASX:CKF) shares were priced at $8.79 as at 22 October 2026, down 1.79% on the day and down approximately 18.69% over the past year.
Collins Foods reported FY26 revenue of $1,592.6 million, up 8.6%, and underlying EBIT of $130.7 million, up 10.1%, in its 30 June 2026 release.
Statutory NPAT was $47.1 million, up 280.5%, and the final dividend was 15.0 cents, taking the FY26 total to 28.0 cents.

As at 22 October 2026, Collins Foods Ltd (ASX:CKF) shares were priced at $8.79, down 1.79% on the day, and the share performance data shows the stock down approximately 18.69% over the past year. Collins Foods is an operator of KFC restaurants in Australia and Europe. Collins Foods reported FY26 revenue of $1,592.6 million, up 8.6%, and underlying EBIT of $130.7 million, up 10.1%, in its 30 June 2026 release.

About Collins Foods Ltd: business overview

Collins Foods Limited operates KFC restaurants in Australia and in Europe, including Germany and the Netherlands, under franchise agreements with Yum! Brands. It also operated Taco Bell restaurants in Australia, which are shown as discontinued in the FY26 results.

FY26 financial results

In an ASX release dated 30 June 2026 for the 53-week period ended 3 May 2026, Collins Foods reported revenue of $1,592.6 million, up 8.6%, which it described as record revenue with growth in Australia and Europe. Underlying EBITDA was $244.5 million, up 6.3%, underlying EBIT was $130.7 million, up 10.1%, and underlying NPAT was $61.4 million, up 13.0%.

Statutory NPAT of $47.1 million compared with $12.4 million, and included restaurant impairment charges of $7.5 million, a $1.4 million provision top-up for wage underpayments and $7.3 million of class action settlement and related costs. After-tax net operating cash flow was $150.1 million, down from $181.4 million.

Dividend, debt and strategy

Net debt fell to $119.6 million from $137.9 million, with a net leverage ratio of 0.77 compared with 0.93, and the group refinanced its debt facilities. A final fully franked dividend of 15.0 cents per share was declared, taking the FY26 total to 28.0 cents, up from 26.0 cents. The company announced the acquisition of eight restaurants in Munich alongside new development agreements with Yum! Brands, a restructured and extended Corporate Franchise Agreement in the Netherlands, and a negotiated exit from Taco Bell.

Related sector context

Quick-service restaurant businesses are influenced by consumer spending, labour and ingredient costs, delivery costs, competition and pricing. Companies report sales growth, same-store or comparable sales, restaurant numbers and franchise profitability, and rollouts of new stores affect both revenue and costs.

Risks to weigh in

The release notes cost-of-living pressures and an uncertain macro and geopolitical backdrop. Operating cash flow was lower than the prior year, the result included impairments, wage compliance and class action costs, and the 53-week period affects comparisons. Operating in the Netherlands has been less profitable, and franchise terms, labour costs and consumer demand can affect outcomes.

Catalysts on watch

Items to watch include the Taco Bell exit, integration of the Munich restaurants, Netherlands profitability, new restaurant openings and the half-year result.

Closing perspective

Collins Foods’ 30 June 2026 release recorded higher revenue and underlying profit, lower net debt and a larger dividend, alongside one-off costs. The next result will show how the portfolio changes contribute.

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