Collins Foods shares fall on Citi downgrade
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The news: Collins Foods shares have fallen after Citi analysts downgraded its rating on the food supplier to “sell” from “neutral” due to cost-of-living pressures.
The numbers: Collins' shares had dropped 6.36% to $10.30 by 1:32pm AEDT, although they have still increased 23.7% over the year to date.
The context: Citi analysts said they were more cautious on the near-term outlook of Collins Foods pointing to softer trading in Australia driven by higher cost-of-living pressures which appeared to be impacting demand, and cost pressures remaining elevated.
The company is also facing two class actions in the Federal Court of Australia on behalf of some KFC employees. The claims allege those employees were not provided with a paid 10 minute rest breaks.
