‘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.

Join QSR Media Australia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The “combined” concept features the operator’s PappaRich, NeNe Chicken, Hokkaido Baked Cheese Tart and Kurimu brands.
This reliable equipment makes pebble ice – a midpoint between fast-ice and the classic flake ice. 
The sandwich chain sold almost 357,900 additional cookies in 2021 compared to 2020.
Adopting data-backed solutions can spell the difference between savings and losses.
Last December, the brand teamed up with Budgy Smuggler to create Footlong and Six-Inch swimwear.
The unmanned store chain, located in Wirye New Town, is selling about 120 kinds of products.
Founded in 2017, it already has a presence in ten countries, including the US, UK and Australia.
This was inspired by tennis player Ash Barty, who coined the feed the "unofficial dish" of the Aussie Open.
The initiative comes as Aussies increasingly search for the single-use items.
The fast food chain first tested the Beyond Meat product in August 2019.
The range is available from $55 exclusively at Budgy Smuggler stores and online.
The chain initially had a pop up in the town early last year.