KFC delivers strong profit for Collins Foods’ first half

Collins Foods Limited saw a 25.9 per cent increase in underlying net profit after tax to $21.9 million in the first half of FY19, compared to $17.4 million during the same period of FY18.

Revenue rose by 27.6 per cent to $411 million, compared to $322.1 million in the prior corresponding period, with same-store sales growth of 3.1 per cent in KFC Australia.

“Our KFC Australia business has continued to deliver strong results. Same-store sales growth improved across all states, particularly Western Australia,” Collins Foods’ chief executive Graham Maxwell said.

“Our ongoing focus is on maintaining earnings margin while driving incremental sales through operational improvements, digital and delivery initiatives, and consistency of customer experience.”

Maxwell said the business expects to build a further 40 to 45 new KFC locations in Australia over the next five years.

Sizzler saw revenue decrease by 7.6 per cent to $22.2 million, as the chain scaled back the number of restaurants in Australia. Sizzler Asia saw royalty revenue grow by 19 per cent, with Collins operating 73 Sizzler restaurants across Asia by the end of the first half.

Taco Bell opened its second store in Robina, Queensland, during the period, and expects a further two stores to open before the end of the calendar year, with a further 50 to open over the next three calendar years.

“We are focused on the growth strategy of our KFC Australia business driving sales by improvement in speed of service and delivering a consistent customer experience,” Maxwell said, noting that the group was well positioned to deliver on its growth opportunities moving forward.

“We are buoyed by the strong operational results being achieved in our KFC Australia operations, the opportunities we see for KFC Europe, and the new growth pillar that Taco Bell represents.”

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