KFC same store sales boost Collins Foods' half-year profits
The company is also looking to open 20 Taco Bell stores in 2020.
Collins Foods’ network of KFC stores in Australia has lifted the company’s profits for the half year ended 13 October 2019 (HY20).
Revenue was up 9.2% to $448.8m from HY19’s $411m. Same store sales for KFC Australia rose 4.9% compared to 3.1% in the same period last year with all states reporting positive growth.
Statutory EBITDA was up 9.7% to $58.8m compared to HY19’s $53.6m and underlying EBITDA increased 7.4% to $57.7m from last year’s $53.7m.
Statutory net profit after tax was up 12.1% to $24.1m (HY18: $21.5 million) whilst underlying NPAT rose 9.1% to $23.9m from HY19’s $21.9m.
“The first half financial result demonstrates the success of past initiatives implemented, including the expansion of delivery, a successful focus on operational excellence, and an ongoing commitment to product innovation,” Collins Foods managing director & CEO Graham Maxwell said in a statement sent to the ASX.
Collins Foods, which also operates the KFC brand in Europe and has rights to Sizzler in Australia and Asia, noted that there are now about 100 KFC restaurants in their network delivery through Deliveroo and Menulog. The delivery channel, the company says, continues to exhibit strong growth in metro and densely populated trade zones.
There were two new restaurant openings, four major remodels and 25 minor remodels completed across the network during the half year. The operator also commenced a multi year rollout of digital menu boards for drive-thrus.
“For the remainder of FY20, we plan to build 4 new restaurants, bringing our net new restaurant count to 9 by financial year end and continue our digital menu board rollout for drive-thrus, complemented by ongoing investment in digital channels,” Maxwell added.
20 new Taco Bells in 2020
On their Taco Bell network, Maxwell said the company is looking to open five more restaurants this financial year in QLD and VIC.
“We are targeting 20 new Taco Bell restaurant builds in 2020. The brand and its products continue to resonate with customers,” he added.