Collins Foods posts positive sales as European business rebounds
The operator’s KFC restaurants in Australia reported a 6.1% increase in revenue growth to $955.5 million.
Collins Foods reported positive sales in their latest financial year, saying its QSR brands are “in excellent shape” despite unprecedented challenges with inflationary pressures and supply chain shortages.
Revenues in the year ended May 1 were up 11.1% to $1.18 billion, whilst underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were up 12.6% to $209 million.
Statutory net profit after tax increased by 47% to $54.8 million.
The operator’s KFC restaurants in Australia reported a 6.1% increase in revenue growth to $955.5 million, with e-commerce accounting for 16.9% of sales in the second half of the year.
Revenue for its Taco Bell restaurants increased 27.5% to $35.8 million.
Collins’ KFC Europe business saw the strongest revenue growth, up 41.2% to $190.4 million, driven by same store sales and margins above pre-pandemic levels and complemented by the commencement of their Netherlands Corporate Franchise Agreement (CFA).
Sizzler Asia posted 10.8% revenue growth to $2.8 million and an EBITDA profit of $1.7 million.
“With our restaurants performing well and a strong pipe line of new sites, we will continue to grow our store footprint across our QSR brands, with 20 to 29 new restaurants planned for FY23. Within this, we are planning for 9 to 12 new KFC Australia restaurants and 2 to 5 new KFC Europe restaurants; we will also accelerate our Taco Bell rollout with 9 to 12 new builds, ensuring the brand remains on track to reach scale within 3 years,” Collins Foods managing director and CEO Drew O’Malley said.