Collins Foods’ half boosted by acquisitions
In its financial results for the half year ending October 16, the operator of KFC and Sizzler restaurants also saw underlying EBITDA increase 9.4 per cent to $38.6 million.
“Given our focus on operational performance, the KFC businesses have achieved similar margins to prior year even though same store sales growth was marginally down on the prior year,” said Graham Maxwell, CEO, Collins Foods.
During the half, the company acquired 13 KFC restaurants around the NSW and Victoria border, and recently announced the acquisition of 11 KFC restaurants in Germany.
Collins opened one KFC restaurant in Queensland during HY17 and expects to open approximately five or six more in the state before the end of the full year.
Maxwell said the foray into Germany provided an attractive new market opportunity.
“Our acquisitions in Australia and Germany provide us with attractive growth opportunities,” he said. “Importantly, both are earnings accretive pre-synergies and a strong strategic fit for our business.”
The Sizzler business had a 27.3 per cent increase in EBITDA of $2.7 million during the first half. The company said this was driven by an improvement in same store sales growth, combined with “good operational controls delivering an enhanced EBITDA margin.” Sizzler Australia finished the half with 21 stores, while Sizzler Asia opened four restaurants.