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Highlights

  • Collins Food is an ASX-listed restaurant operators which manages KFC and Taco Bell outlets across Australia, Germany and Netherlands
  • In FY24, CKF’s revenue jumped 10.4% YoY to AUD 1,488 million, backed by growth across all business units
  • Perkins (Kevin Williams Joseph) has the maximum stake in the company with a shareholding of around 6.15%

Collins Foods Limited (ASX:CKF) is an Australian-based company which operates, manages, and administers franchise restaurants across Australia and Europe. The company runs KFC and Taco Bell outlets in Australia, Germany, and the Netherlands. Committed to supporting local industries, Collins Foods actively partners with Australian manufacturers and service providers, sourcing a range of Australian-made products.

In the financial year 2024 (FY24), the company achieved record revenues and same-store sales, with a 10.4% YoY increase in revenue to AUD 1,488.9 million, driven by growth across all business units. EBIT for FY24 rose by 15% YoY to AUD 124.1 million, while net operating cash flow surged 20.7% YoY to AUD 176.4 million.

During the period, statutory NPAT increased to AUD 76.7 million, bolstered by profits from the sale of Sizzler Asia and adjustments related to Taco Bell’s impairment and reduced depreciation costs.

Top 10 shareholders of CKF

Top 10 shareholders of CKF have around 30.53% shareholding in the firm, while top four have 21.90% of the shareholding. The highest stake in the firm is held by Perkins (Kevin Williams Joseph) with a shareholding of 6.15%, followed by Yarra Funds Management Limited with a shareholding of 6.11%.

Recent business update

In a trading update issued on 22 August 2024, the company reported a 1.1% year-on-year increase in sales for the first 16 weeks of FY25 (from 29 April 2024 to 18 August 2024). However, the profit boost from higher sales was more than offset by the ongoing impact of inflation on cost of goods, energy, and labour expenses. Same-store sales continued to reflect weaker consumer sentiment in Europe and Australia, as well as the effects of the conflict in the Middle East, which has negatively impacted sales in the Netherlands.

In 1HFY25, margins are expected to decrease over the previous corresponding period. Group underlying EBITDA margin are expected to reduce by 1.3-1.6%, and underlying EBIT margins are anticipated to fall by 1.5-1.8%.

Outlook

Under the Australian KFC portfolio, new restaurant openings is going as per the company’s plan, in line with the previous financial year. By the end of 2024, four to five additional restaurants (100% owned by CKF) are planned in Europe.

The focus is on exploring growth opportunities in present and new markets, investing in customer engagement and satisfaction and enhancing operational practices to boost productivity and cost management.

Share performance of CKF

CKF shares closed 0.12% higher at AUD 8.180 apiece on 16 September 2024. Including today’s gain, in the past one year, CKF’s share price has dropped by 15.06% and in the last three months, it has declined by almost 10.11%.

52-week high of CKF is AUD 12.55, recorded on 11 January 2024, while 52-week low is AUD 7.41, recorded on 23 August 2024.

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 16 September 2024. The reference data in this report has been partly sourced from REFINITIV.