Collins Foods shares continue to rally as analysts upgrade price target
Make us a preferred source
Make us a preferred source on Google
The news: KFC and Taco Bell operator Collins Foods’ shares continued to rally as Wilsons Advisory analysts increased their target price on the stock following a strong earnings result on Tuesday.
The numbers: Collins Food shares jumped 11.33% to $9.48 by 2:32pm AEST and was up 30.5% over the last five days. This follows a strong rally on Tuesday when the company closed 16.9% higher.
However, its share price is down 5.15% over the past 12 months.
The context: Wilsons analysts retained their overweight rating on the stock and lifted its 12-month price target from $10.13 to $10.20.
This was largely driven by a “full margin recovery in KFC Australia and expanded store network in KFC Europe”, Wilsons said in a research note.
What they said: The strong margins in the second half of financial year 2025 for KFC Australia reflects “stronger [cost of goods sold] deflation and early success on labour efficiency initiatives”.
“We expect this momentum to carry into financial year 2026 and subject to [same-store sales growth], we see upside risk to group earnings guidance from stronger KFC Australia earnings,” the note said.
The source: Wilsons Advisory research
