Key Highlights:

• For FY26, the 53 weeks to 3 May 2026, Collins Foods reported record Revenue of A$1.59 billion, up 8.6%, with underlying EBITDA up 6.3% to A$244.5 million and underlying net...

• The FY26 result shows the core KFC Business performing well, with record revenue and growing underlying profit, while the Taco Bell exit removes a loss-making distraction — the...

• Catalysts include continued strength in Australian KFC same-store sales, a recovery in the European business, the benefit of the Taco Bell exit and any one-off gain on its...

• Collins Foods is exposed to consumer spending and quick-service dining demand, and its European operations were notably weak, which could persist.

Collins Foods is a restaurant and consumer company — not an industrial business, despite the framing of the headline — that operates KFC outlets in Australia and Europe and had been developing Taco Bell in Australia. As one of the largest KFC franchisees in its markets, its Earnings depend on restaurant traffic, same-store sales and the health of quick-service dining demand.

A record FY26 result and the exit from Taco Bell, set against European headwinds, have kept Collins Foods on investors' radar into September.

Latest Development

For FY26, the 53 weeks to 3 May 2026, Collins Foods reported record revenue of A$1.59 billion, up 8.6%, with underlying EBITDA up 6.3% to A$244.5 million and underlying net profit after tax from continuing operations up 13% to A$61.4 million. Statutory net profit rose sharply to A$47.1 million, reflecting prior-year impairments.

The company moved to exit Taco Bell — transferring 20 of 27 stores to a joint venture and closing seven — clearing the decks to focus on KFC, and reported that Australian KFC same-store sales rose 4.4% in the first eight weeks of FY27, while its German and Dutch KFC businesses were weaker, down 7.2% and 7.8%.

Financial and Operational Picture

The FY26 result shows the core KFC business performing well, with record revenue and growing underlying profit, while the Taco Bell exit removes a loss-making distraction — the discontinued operation cost A$2.9 million after tax in FY26. The contrast between solid Australian KFC same-store sales and weaker European trading is the key operational tension.

For a quick-service restaurant operator, same-store sales, new-store growth and input-cost management drive earnings, and the focus on KFC after the Taco Bell exit sharpens the Investment case.

What Could Drive the Shares Next?

Catalysts include continued strength in Australian KFC same-store sales, a recovery in the European business, the benefit of the Taco Bell exit and any one-off gain on its completion, new-store growth, and input-cost trends. Evidence that Europe can stabilise would remove a key drag.

Sustained Australian momentum alongside a European recovery would be the clearest positive signal.

Risks Investors Should Watch

Collins Foods is exposed to consumer spending and quick-service dining demand, and its European operations were notably weak, which could persist. Input costs, wage Inflation and competition in fast food are ongoing pressures.

The pace of the European recovery and the successful completion of the Taco Bell exit are additional considerations.

Investor Takeaway

Collins Foods delivered record FY26 revenue of A$1.59 billion and grew Underlying Profit 13%, while exiting Taco Bell to focus on KFC, though its European business softened. Whether it rewards watching depends on Australian KFC momentum and a European recovery. Same-store sales, Europe and the Taco Bell exit are the things to watch.