Highlights

  • Collins Foods shares were trading at AUD 8.35, up 2.45%, on 1 September 2026, following the release of latest trading update.
  • Total company sales increased 6.6% in the first 17 weeks of FY27 on a constant-currency basis.
  • KFC Australia same-store sales rose 3.4% over the first 17 weeks, while recent European trading trends improved.
  • FY26 continuing-operations Revenue reached a record $1,592.6 million, up 8.6%.
  • Underlying NPAT rose 13.0% to a record $61.4 million, while net Debt declined to $119.6 million.
  • Collins Foods is targeting further growth through KFC Australia initiatives and a larger German restaurant network.

Collins Foods Limited (ASX:CKF) has provided an early FY27 trading update alongside its 2026 Annual General Meeting, showing total company sales up 6.6% on the prior corresponding period across the first 17 weeks on a constant-currency basis.

Collins Foods shares were trading at AUD 8.35, up 2.45%, during the afternoon Trading session on 1 September 2026. The stock remained down 12.93% over the past year.

The trading update follows a record FY26 in which continuing-operations revenue, Underlying Profit and several divisional metrics reached new highs, while management continued to reshape the portfolio around KFC in Australia and Europe.

Australia Leads Early FY27 Trading

KFC Australia remained the largest contributor to early FY27 performance.

Across the first 17 weeks, total KFC Australia sales increased 6.4%, while same-store sales rose 3.4%.

For the latest four-week period, total sales were up 5.0% and same-store sales increased 3.1%.

Management said the Australian Business continued to perform well despite cycling a strong Christmas in July promotion from the prior year. During the latest Christmas in July campaign, Collins Foods said several weeks achieved all-time-record sales.

The company is now working on a series of initiatives intended to broaden restaurant trading occasions and improve organic performance.

These include the national rollout of Kwench by KFC, extended late-night trading and breakfast trials at approximately 16 restaurants on the Gold Coast beginning in September.

Collins Foods noted that late-night and breakfast together already account for more than one-third of Australian quick-service restaurant spending and are among the faster-growing dayparts in the category.

Record FY26 Performance

The AGM update also revisited the company’s FY26 financial performance.

Group revenue from continuing operations increased 8.6% to a record $1,592.6 million.

Underlying EBITDA rose 6.3% to $244.5 million, while underlying NPAT increased 13.0% to a record $61.4 million.

Underlying Earnings Per Share came in at 52.0 cents.

Statutory NPAT was $47.1 million and included $7.3 million relating to the class action settlement and associated costs, $6.5 million of net restaurant impairments, a $1.4 million wage provision top-up and $0.4 million of Acquisition costs.

Cash generation remained a feature of the result, with net Operating Cash Flow of $150.1 million and cash conversion of approximately 94%.

Net debt declined to $119.6 million, while the net Leverage Ratio fell to 0.77.

Return on shareholders’ Equity increased by 220 basis points to 14.5%.

The Board declared a final fully Franked Dividend of 15.0 cents per share, taking the total FY26 dividend to 28.0 cents per share from 26.0 cents in FY25.

KFC Australia Expands

Australia generated FY26 revenue of $1,241.3 million, an increase of 7.6%.

Same-store sales rose 2.7% for the year, with management saying trading momentum improved as FY26 progressed.

Collins Foods opened eight new restaurants and completed 33 remodels, including three “supercharged” formats.

Digital sales increased to 43.2% of revenue from 34.2%, supported by greater kiosk penetration and changes to the delivery-fee structure.

Management is now targeting further growth from existing restaurants as well as selective network expansion.

The company said KFC continues to perform well on Brand measures including Brand Index, Brand Buzz, satisfaction and recommendation, while its objective is to translate that brand position more fully into restaurant revenue and profitability.

Germany Remains a Strategic Growth Market

Europe generated record FY26 revenue of $351.3 million, up 12.5%.

Underlying EBITDA increased 14.0% to $44.9 million, while underlying EBIT rose 94.7% to $14.9 million.

Germany delivered FY26 same-store sales growth of 3.7%.

Collins Foods completed the acquisition of eight KFC restaurants in Munich on 1 June, taking its German network to 25 restaurants and making it the largest KFC Franchisee in Germany by revenue.

The company has also increased its FY30 development target to between 45 and 90 additional restaurants.

Management stressed that restaurant openings will remain subject to Investment returns, location quality and sustainable sales performance.

Germany’s early FY27 trading has been more mixed.

Total sales increased 44.0% across the first 17 weeks, reflecting the expanded restaurant base, while same-store sales declined 5.3%.

However, performance improved in the latest four weeks, with total sales up 58.8% and same-store sales down just 0.1%.

Netherlands Trends Improve

KFC Netherlands recorded a 2.5% decline in total sales and a 3.4% fall in same-store sales across the first 17 weeks of FY27.

Recent trading showed an improvement.

Over the latest four weeks, total sales increased 4.9%, while same-store sales rose 3.1%.

Management attributed the better trends to more effective promotional activity.

A Halal-certified product range has also recently been introduced in several Collins Foods restaurants in the Netherlands, with management reporting favourable early results.

The company continues to prioritise profitability over network expansion in the market.

In FY26, restaurant-level EBIT margins in the Netherlands improved to 8.5% from 6.7%.

Collins Foods also extended and simplified its Corporate Franchise Agreement in the Netherlands, with the revised arrangement running through the end of 2029.

Taco Bell Exit Completed

Collins Foods has now completed its exit from Taco Bell.

In August, 20 restaurants were transferred to the joint venture established between Taco Bell International and Restaurant Brands Australia.

The remaining seven restaurants had already been closed during FY26.

Four associated leases have been assigned to third parties, while the remaining three Lease transfers are well progressed.

The company expects the financial effects of the exit to be reflected in its interim FY27 accounts.

Collins Foods also anticipates recording a one-off gain of approximately $20 million to $22 million relating to the transfer of lease liabilities to other parties.

The exit leaves the business focused on the KFC brand across Australia and Europe.

Compliance and Board Changes

The company also updated shareholders on wage compliance and governance matters.

At the end of FY26, Collins Foods carried a provision of $8.3 million for estimated wage underpayments following its voluntary compliance review.

Remediation payments to affected team members began in November 2025, and the company remains engaged with the Fair Work Ombudsman.

Collins Foods has also entered a no-admissions settlement agreement relating to class action proceedings concerning 10-minute rest pauses. Its share of the settlement is approximately $9.0 million, subject to Court approval.

On the Board, Christine Holman and Nicki Anderson are retiring at the conclusion of the AGM.

Meredith Scott, who joined on 1 June, is standing for election and is expected to succeed Holman as Chair of the Audit and Risk Committee, subject to Shareholder approval.

What Investors May Be Watching

The main focus for investors is likely to be whether Collins Foods can sustain KFC Australia’s current sales trajectory while improving European same-store performance.

Australia remains the company’s largest and most profitable market, with management pursuing new dayparts, restaurant formats and beverage initiatives to lift sales from the existing network.

Germany offers a different growth profile. The company is targeting substantial restaurant expansion by FY30, but management has made clear that new development will depend on individual restaurant returns and a return to sustainable same-store sales growth.

Recent four-week trading indicates improving trends in both Germany and the Netherlands compared with the early weeks of FY27.

With Taco Bell now exited, Collins Foods enters FY27 with a more concentrated KFC portfolio, lower net leverage and a stated focus on disciplined Capital allocation across Australia and Europe.