‘Trusted' KFC leads way for Collins Foods' strong FY
The performance of Its Sizzler restaurants, in contrast, were severely hit by the pandemic.
ASX-listed Collins Foods said its underlying full-year profit was up 5.1% to $47.3 million, primarily driven by its KFC restaurants that quickly pivoted towards delivery and takeaway.
Revenue for the 53 weeks to 3 May rose 8.9% to $981.7 million, whilst statutory profit was down 20.1% to $31.3 million, attributing it to the impact of new accounting standards regarding leases.
"KFC Australia has once again shown that it is a safe and trusted brand that customers can rely on during uncertain times," chief executive Drew O'Malley said in a trading update.
Same-store sales were up 3.5% in Australia, with a 2.3% second-half sales growth. Across its network, O’Malley said 137 of its 240 restaurants now offer delivery, up from around 100 at the half year.
During the year, Collins also opened six new Taco Bell restaurants in QLD and two in VIC, bringing its total to 12, aside from nine new KFC restaurants. Its Sizzler restaurants were most severely impacted by the pandemic, with revenues down 17.9% to $38.3 million amidst dine-in restrictions. Three of its 12 restaurants were forced to close.
Net debt, meanwhile, was cut from $212.5 million in FY2019 to $203.2 million at the end of FY2020, leaving it with a debt facility of around $400 million.
The company declared a final dividend of 10.5 cents per share.