Key Highlights

  • FY26 continuing-operations revenue increased 8.6% to AUD 1,592.6mn.
  • Underlying NPAT from continuing operations rose 13.0% to AUD 61.4mn.
  • The AGM update detailed Australian sales, European trading and the Taco Bell exit.

On 27 October 2026, Collins Foods Limited (ASX:CKF) was trading at AUD 8.92, up 0.23% at the time of the intraday quotation. The quoted movement describes that trading session and is not attributed to an announcement issued on an earlier date. The group operates quick-service restaurants in Australia and Europe.

Financial Results and Operating Performance

The company presented its FY26 operating review at its annual general meeting on 1 September 2026. Revenue from continuing operations, excluding Taco Bell, increased to AUD 1,592.6mn from AUD 1,466.5mn in FY25. Underlying EBITDA rose 6.3% to AUD 244.5mn from AUD 230.1mn, while underlying NPAT increased 13.0% to AUD 61.4mn from AUD 54.4mn. The two fiscal years are not identical in length: FY26 covered 53 weeks and FY25 covered 52 weeks.

Profit, Cash Flow and Capital Structure

Statutory NPAT for continuing operations reached AUD 47.1mn, compared with AUD 12.4mn in FY25. The presentation identified FY26 net operating cash flow of AUD 150.1mn against AUD 181.4mn in FY25. Net debt decreased to AUD 119.6mn from AUD 137.9mn, and the stated pre-AASB 16 net leverage ratio moved to 0.77 from 0.93. The fully franked FY26 dividend totalled 28.0 cents per share, compared with 26.0 cents for FY25.

Australian Restaurant Development

Collins Foods reported 375 KFC restaurants, nine more than FY25. In Australia, the four-week same-store sales growth rate cited at the AGM was 3.1%, following 4.0% for the first eight weeks of the reported trading period. Total sales growth for the corresponding four weeks was 5.0%, versus 6.7% in the initial eight weeks. Management described the national introduction of the Kwench offering, a near-complete late-night trading rollout and a planned breakfast trial.

European Operations and Portfolio Changes

The presentation reported an eight-restaurant acquisition in Munich and new development agreements for Germany. German same-store sales for the latest four weeks were down 0.1%, compared with a 7.2% decline in the first eight weeks. In the Netherlands, the latest four-week same-store sales increased 3.1%, against a 7.8% decline in the initial eight weeks. The company also reported that 20 Taco Bell restaurants transferred to new ownership and seven were closed, with four leases assigned to third parties.

Business Overview

Collins Foods operates quick-service restaurants, principally through its KFC network in Australia and Europe. The company manages restaurant development, food service operations, workforce planning, procurement and customer-facing digital activity. It also conducts store refurbishments and capacity upgrades, including its Supercharge restaurant programme. Its financial reporting distinguishes continuing operations from its exited Taco Bell business.

Risks and Catalysts on Watch

Operational matters identified in the AGM material include the pace of comparable restaurant sales, labour efficiency, food input costs and the timing of restaurant development. The German acquisition and future new openings involve integration and execution considerations. In the Netherlands, management is monitoring network profitability. In Australia, product trials and additional trading periods remain operational initiatives whose eventual results will be reported in subsequent disclosures.

Key Points

The AGM presentation combined higher FY26 revenue and earnings with a reduction in net debt. It also disclosed differing trading patterns across Australia, Germany and the Netherlands. Future reporting can show whether recently introduced initiatives, restaurant additions and the continued integration of European operations change reported sales and earnings.