KFC sales lift profits for Collins Foods
Collins Foods’ underlying half-year profit has risen 9.1 per cent to $23.9 million, boosted by a 4.9 per cent rise in same-store sales at its KFC Australia franchises.
The fast food operator said statutory profit for the 24 weeks to 13 October was up 12.1 per cent to $24.1 million, as its revenue rose 9.2 per cent to $448.8 million in the six months to 13 October.
“Our KFC Australia network delivered enhanced same store sales growth that, with new restaurant openings, drove strong growth in revenue,” chief executive Graham Maxwell said on Wednesday.
“Combined with management’s focus on maintaining strong cost control, KFC Australia’s earnings margin grew over the past six months.”
Collins lifted its interim dividend by half a cent to 9.5 cents and its shares were 4.2 per cent higher at $10.13 by 1146 AEDT.
The company said around 100 of its 233 Australian KFC franchises were now offering delivery through Deliveroo and Menulog, which was helping boost sales volumes.
Speed of service was also 10 per cent faster than prior year at peak times, the company said.
Fast food restaurants opening
Collins Foods said it has opened six new KFC restaurants in Australia in the last seven and a half months, and has started a multi-year rollout of digital menu boards from drive-throughs.
The company opened three new Taco Bells in Queensland in the past three months, bringing its total number of seven across Australia, and plans to open two more in Victoria before the end of the year.
It is targeted to open 20 new Taco Bells in next calendar year.
Revenues at its 40 restaurants in Germany and the Netherlands was up 11.8 per cent to $63.7 million, with a national brand refresh helping sales in Germany.
Source: AAP. This article first appeared on Inside Retail, a sibling website to Inside Franchise Business.