Highlights

  • Collins Foods recorded higher HY26 revenue and earnings driven by Australia and Europe operations.
  • Underlying NPAT rose year-on-year, supporting an increase in the interim dividend payout.
  • Management updated full-year NPAT growth expectations to a higher percentage range.

Collins Foods Limited (ASX:CKF) released its results for the half year ended 12 October 2025 (HY26), reporting higher revenue, margin expansion and earnings growth compared with the prior corresponding period. Group revenue increased 6.6% year-on-year to AUD 750.3 million, supported by contributions from both KFC Australia and KFC Europe, despite ongoing cost-of-living pressures across key markets.

Underlying EBITDA for the period rose 11.0% to AUD 113.9 million, reflecting total sales growth, same store sales improvements and productivity efficiencies. Underlying EBIT increased 20.0% to AUD 63.0 million, while underlying net profit after tax (NPAT) grew 29.5% to AUD 30.8 million. Statutory NPAT came in at AUD 27.2 million, after accounting for impairments and additional wage remediation provisions.

Net operating cash flow after tax was reported at AUD 69.1 million during the half. Net debt reduced to AUD 138.9 million, with the net leverage ratio declining to 0.89, following debt repayments and refinancing completed during the period. The Board declared a fully franked interim dividend of 13.0 cents per share.

KFC Australia: Sales Growth and Network Expansion

KFC Australia generated revenue of AUD 563.8 million in HY26, up 5.0% year-on-year. Same store sales increased by 2.3%, reversing the minor decline reported in the previous first half. Underlying EBITDA rose 9.4% to AUD 111.8 million, with the EBITDA margin improving to 19.8%. Underlying EBIT increased 11.6% to AUD 75.5 million.

Digital channels accounted for 41.7% of KFC Australia sales during the period, reflecting continued investment in kiosks and delivery platforms. The group expanded its Australian footprint to 292 restaurants, following the opening of eight new locations, and continued its restaurant remodelling program.

KFC Europe: Margin Improvement and Sales Recovery

KFC Europe revenue increased 14.6% to AUD 162.9 million, or 5.3% on a constant currency basis. Same store sales returned to positive growth, with the Netherlands and Germany reporting increases of 0.4% and 4.8%, respectively. Underlying EBITDA rose 19.6% to AUD 20.4 million, while underlying EBIT increased to AUD 6.9 million from AUD 2.8 million in the prior period.

Digital sales penetration remained elevated across European markets, contributing to customer access and transaction volumes. The European store network stood at 79 restaurants at the end of HY26, following portfolio adjustments and selective closures.

Trading Update and Outlook

In the first seven weeks of H2 FY26, Collins Foods reported total sales growth across all regions, with group management targeting year-on-year underlying NPAT growth in the mid to high-teens percentage range, revised from its earlier outlook.

Share Price Snapshot
CKF was trading 1.55% lower at AUD 11.42 per share as of 02 December 2025.