Did somebody say KFC? Poultry palace crashes through $1b sales barrier
Collins Foods Group shares soared 15 per cent today after the Brisbane company revealed its revenue from KFC Australia rose above $1 billion for the first time.
Its Australian revenue jumped 10 per cent, while in Europe it was up 31 per cent and Collins chief executive Drew O’Malley said the first seven weeks of its financial year were encouraging.
The company, which also owns the Taco Bell business in Australia as well Sizzler Asia, produced statutory earnings of $197 million, down from $207 million last year.
Its bottom line was $11.3 million, a significant decrease on last year’s $54 million but it included a writedown of its Taco Bell assets of $36.7 million.
A final dividend of 15 cents a share was declared.
“KFC’s strong same-store sales performance in both Australia and Europe reflects the strength of this global powerhouse brand and its inherent resilience during challenging economic conditions,” O’Malley said.
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“While margin headwinds are expected to remain for much of the next year, we expect these to begin to subside and they have not changed long-term growth plans and outlook.”
O’Malley signaled a competitive fight was looming over pricing, but Collins was determined to maintain its value proposition.
“KFC’s continued market leadership in value, quality and taste metrics has validated its strategy to prioritise long-term brand health over short-term margin pressures.”
