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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 recorded 501.9% YoY surge in statutory NPAT to AUD 76.7 million
  • Challenger Managed Investments Ltd. has the maximum stake in the company with a shareholding of around 6.70%

Collins Foods Limited (ASX: CKF) is an Australian-based restaurant operator engaged in the management and administration of franchise restaurants across Australia and Europe. The company operates KFC and Taco Bell outlets in Australia, Germany, and the Netherlands.

In the financial year 2024 (FY24) ending 28 April 2024, the company recorded 10.4% YoY jump in its revenue to AUD 1,488.9 million and 12% YoY growth in underlying EBITDA to AUD 229.8 million, driven by growth in sales and cost efficiencies. The period saw 501.9% YoY surge in statutory NPAT to AUD 76.7 million, driven by underlying performance of the company, sale of Sizzler Asia, the impairment of Taco Bell, and the resultant depreciation deduction.

The period saw opening of 17 new restaurants and KFC Australia contributed highest to the revenue.

In the first seven weeks of FY25, total sales of KFC Australia increased by 1.5%, while sales fell by 0.1% for KFC Europe, 2.3% for Netherlands and 2.8% for Germany. During the reported period, Taco Bell recorded 0.6% rise in same-store sales.

Top 10 shareholders of CKF

Top 10 shareholders of CKF have around 40.58% shareholding in the firm. The highest stake in the firm is held by Challenger Managed Investments Ltd., with a shareholding of around 6.70%, followed by Perkins (Kevin Williams Joseph) with a shareholding of 6.16%.

Outlook

The company expects its sales growth to be impacted by cost-of-living and inflationary pressure, resulting in margin pressures across the organisation. The margins are expected to recover with the improvement in trading conditions.

The focus is on expanding KFC network with Australian expansion, product innovation and opening new restaurants in the Netherlands in FY25.

The company is engaged in actively exploring mergers and acquisition opportunities to expand KFC’s presence in existing markets along with new complementary geographies.

Share performance of CKF

CKF shares closed 1.36% higher at AUD 8.950 apiece on 22 July 2024. Including today’s gain, in the past one year, CKF’s share price has dropped by 11.47% and in the last three months, it has declined by almost 9.78%.

52-week high of CKF is AUD 12.55, recorded on 11 January 2024, while 52-week low is AUD 8.67, recorded on 19 July 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 22 July 2024. The reference data in this report has been partly sourced from REFINITIV.