Collins Food shares surge on early FY26 sales boost
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More news: Collins Food’s share price surged after the local KFC operator reported a 6.7% increase in total company sales in the first 18 weeks of FY26.
At 12:55pm AEST, shares in Collins Food lifted 8.1% to $10.37.
Citi analysts said the trading update “revealed an acceleration in the rate of [same-store sales] growth across all markets, at an even faster rate than the market was expecting”.
They noted that Collins’ reiterated FY26 NPAT guidance for low to mid teens percentage growth “might be conservative as the guidance didn’t assume any improvement in the consumer, which is clearly getting better”.
The analysts also flagged that the update serves as another data point that “Australian consumer is improving” and that the impact of McDonald’s expanding into the chicken category in Australia is “not proving to be a major concern”.
Collins Foods sees early FY26 sales growth; reaffirms profit guidance
The news: Local KFC operator Collins Food has reported an uptick in sales for the first 18 weeks of FY26, according to a trading update released this morning.
The numbers: Total company sales were up 6.7% on the prior corresponding period, driven by KFC sales store sales growth across all markets.
KFC Australia total sales were up 5.1% year on year. Collins Food also operates KFC in Netherlands and Germany, which saw total sales growth of 4.8% and 8.4% respectively.
The context: The group — a franchisee of US-based Yum! Brands — said performance improved during the period, underpinned by a sharper focus on execution in restaurants and "impactful product development".
Collins Food reaffirmed its full-year guidance, targeting year-on-year growth in underlying net profit after tax in the "low to mid-teens" on a percentage pbasis.
New restaurant development also remains on track, the company said, including a new store in Germany which opened in mid-August under new arrangements with Yum! Brands to accelerate development.
What they said: "Collins Foods' positive same-store sales momentum which began in the second half of FY25, has continued into the early periods of FY26, with sales growth accelerating in all markets," said managing director and CEO Xavier Simonet.
"Whilst same-store sales comparatives will become more challenging as we progress through the year, our stronger performance reflects our enhanced focus on the customer experience, and on operating disciplines, supported by successful new product innovation.
"Improved sales, lifting labour productivity, reducing food wastage, disciplined cost management and deflation in some commodities are all contributing to margin expansion."
The source: ASX
