Collins Foods Limited on Thursday revealed plans to open more than 50 new Taco Bell restaurants across multiple states in Australia over the next three years.

The food retail company entered into a development agreement with Taco Bell owner Yum! Brands, giving it the right of first offer to establish new Taco Bell restaurants across NSW, Queensland and Western Australia. The expansion will be funded through internally generated cash flow.

“We have seen tremendous enthusiasm for the Taco Bell brand in Australia, and this is reflected in the continued strong performance of our Annerley restaurant,” Collins Foods’ chief executive Graham Maxwell said.

“We believe in the significant growth potential of Taco Bell, and are pleased to have the strong confidence of Yum! Brands to grow Taco Bell’s presence across Queensland and into other markets.”

Collins Foods opened its first Taco Bell store in Annerley, Brisbane, in 2017, and plans to open three further stores before the end of the 2018 calendar year in Robina, Cleveland and North Lakes.

The group, which also owns KFC Australia, saw a 13.3 per cent increase in net profit of $38.9 million over the 2018 financial year and said the Taco Bell economic model was “delivering to expectations” and has led to positive consumer engagement.

This article first appeared on Inside Retail, a sibling publication to Inside Franchise Business.