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Did somebody say KFC? Collins flying high on $1 billion chicken sales

Business

Collins Foods Group has cracked $1 billion in revenue for its financial year and is now looking to significantly boost to its successful KFC franchises.

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The Brisbane-based company reported a net profit of $32.9 million for the May year on revenue of $1.07 billion. KFC revenue was $900 million, a 14 per cent increase. The underlying net profit was $48 million.

A fully-franked final dividend of 12.5 cents a share was declared bringing the total for the year to 23 cents a share.

The company already has 251 KFC franchises in Australia, 17 in Germany and 29 in The Netherlands as well as 16 Taco Bell restaurants in Australia, but said it would continue to pursue KFC acquisitions were possible.

Chief executive Drew O’Malley said KFC was a standout performer with same-store sales up 12.9 per cent. Its Taco Bell restaurants had sales growth of 57 per cent.

He said the company would now focus on also expanding the Taco Bell footprint, which was relatively new to Australia.

“With KFC Australia sustaining the higher sales base and clear brand strength it will remain the core engine of performance,” O’Malley said.

“We are now operating under a new development agreement to build a minimum of 66 new restaurants by 2028 and expect to build ahead of the required rate at nine to 12 restaurants in 2022.”

He said there was an incentive in the development agreement to build up to four KFC restaurants a year in The Netherlands.

New Taco Bell restaurants were also planned for Queensland and Victoria. It anticipated its first restaurant in Perth later this year.

Collins also announced O’Malley would join the board as managing director.

 

 

 

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