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Highlights

  • Collins Foods operates as a franchisee for KFC and Taco Bell in Australia, as well as a corporate franchisee for KFC in the Netherlands and Germany
  • In 1HFY24, the company saw 14.4% YoY increase in the revenue to AUD 609.4 million
  • Challenger Managed Investments Ltd has the highest stake in the firm with a shareholding of nearly 6.70%

Collins Foods Limited (ASX: CKF) is a restaurant operations company, which operates Taco Bell and KFC restaurants in the Netherlands, Germany and Australia. The company operates 280 restaurants in Australia, 16 in Germany, and 59 in the Netherlands. 

In the first half of the financial year 2024 (1HFY24), the company reported a 14.4% rise in the revenue to AUD 609.4 million, underpinned by growth in sales at existing stores and the opening of new stores, despite inflationary pressure. Meanwhile, in 1HFY24, underlying EBITDA increased by 16.7% YoY to AUD 109.9 million and operating cash flow grew by 44% YoY to AUD 82.2 million.

Top 10 shareholders of CKF

The top 10 shareholders of CKF have around 40.56% and the top four have 23.99% of the shareholding. Challenger Managed Investments Ltd and Perkins (Kevin Williams Joseph) have the highest stake in the firm with a shareholding of around 6.70% and 6.16%, respectively.

 

Recent business update

On 20 June 2024, the company notified that Challenger Limited and its related entities and Apollo Global Management, Inc. and its controlled entities have decreased their voting power in the group from 7.71% to 6.70% as of 18 June 2024.

Through an ASX-filing dated 11 June 2024, the company informed that Drew O’Malley will step down from the position of managing director and CEO on 1 July 2024. Kevin Perkins, who is serving as interim MD and CEO, since 5 February 2024, will continue his role. Meanwhile, the board continues the search for new CEO, within and across borders.   

Outlook

In FY24, for KFC Australia, the company expects its EBITA margin to be neutral compared to the previous year, with improvement anticipated in FY25. Meanwhile, Taco Bell, at the restaurant level is expected to deliver positive EBITDA.

The focus is on opening new restaurants, undertaking design and digital innovation and undertaking merger and acquisition as well as geographical expansion opportunities.

Share performance of CKF

CKF shares closed 1.304% higher at AUD 9.32 apiece on 24 June 2024 with a market cap of AUD 1.08 billion. Including today’s gain, CKF shares have gained 17.38%, and in the last three months, the share price has dropped by nearly 9.51%.

The 52-week high of CKF is AUD 12.55, recorded on 11 January 2024, while the 52-week low is AUD 7.50, recorded on 20 June 2023.

CKF Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 24 June 2024. The reference data in this report has been partly sourced from REFINITIV.