small-cap

One Consumer Stock Likely to Face Resistance at Current Levels – CKF

Jun 24, 2025 | Team Kalkine

Read Time :10 Mins

One Consumer Stock Likely to Face Resistance at Current Levels – CKF — Image source: shutterstock

CKF:ASX

Investment Type

Small-Cap

Risk Level

Action

Rec. Price (AU$)

This report is an updated version of the report published on 24 June 2025 at 10:58 AM AEST.

Collins Foods Limited (ASX: CKF)

Collins Foods Limited is an Australian-based company that operates in the fast-food and quick-service restaurant (QSR) sector. The company is primarily known for owning and operating franchises of popular international fast-food brands, including KFC and Taco Bell.

Recommendation Rationale – SELL at AUD 9.080

Trading Around Resistance: CKF’s share price has crossed its second resistance (R2) of AUD 8.994 recommendation on 12 June 2025. However, its 14-day RSI is showing a reading of ~75.06; hence, the stock may face some consolidation before scaling further upside.
NPAT Declined: In FY25 ended 30 April 2025, CKF reported a 2.1% increase in its revenue at AUD 1,519.5 million (FY24: AUD 1,488.9 million). However, its underlying NPAT from continuing operations declined 14.8% year-on-year to AUD 51.1 million (FY24: AUD 60.0 million) because of higher depreciation charges.
Overvalued Multiples: On a forward 12-month basis - key valuation multiples (P/E and P/B) are higher than median of the Consumer Cyclicals sector.
Risks: CKF is exposed to changes in consumer spending patterns, especially during economic downturns or cost-of-living pressures. Fast food, although resilient, can still see reduced transaction volumes or trading down during tough economic times.

CKF Daily Chart

Valuation Methodology: EV/Sales Approach (FY April'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering the revenue growth in KFC Australia, operational efficiency gains, expected margin improvement in FY26, trading update for the first six weeks of FY26. For conducting the valuation, the following peers have been considered: Domino's Pizza Enterprises Ltd (ASX: DMP), Flight Centre Travel Group Ltd (ASX: FLT), Experience Co Ltd (ASX: EXP) and others have been considered.

Given its current trading levels, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 9.080, as of 24 June 2025 at 10:15 AM AEST.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

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

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 24 June 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Mid-Cap

Technical Analysis on One NYSE-Listed Uranium Stock- UEC

Mar 13, 2026 Team Kalkine

Small-Cap

One NASDAQ- Listed Semiconductor Stock at Resistance Level- HIMX

Mar 13, 2026 Team Kalkine

Blue-Chip

MQG Scales AUM and Private Credit Capabilities to Drive Growth

Mar 13, 2026 Team Kalkine

Small-Cap

Technical Analysis on Two ASX-Listed Stock – RAU, HRN

Mar 13, 2026 Team Kalkine

Mid-Cap

Technical Analysis on One NYSE- Listed Mining Stock- ERO

Mar 12, 2026 Team Kalkine

Disclaimer-

This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

Choosing an investment is an important decision. If you do not feel confident making a decision based on the recommendations Kalkine has made in our reports, you should consider seeking advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations to invest in securities and other financial products.

Kalkine is not responsible for, and does not guarantee, the performance of the investments mentioned in this report This report may contain information on past performance of particular investments. Past performance is not an indicator of future performance. Hypothetical returns may not reflect actual performance. Any displays of potential investment opportunities are for sample purposes only and may not actually be available to investors. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services..

Please also read our Terms & Conditions and Financial Services Guide for further information. Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this report or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website including entities covered in this Report.

Past performance is not a reliable indicator of future performance.