Collins Foods shares surge on improved half-year results

The news: Shares in fast food operator Collins Food were up almost 8% in opening trade on Tuesday morning after it reported higher revenue, same-store sales and earnings.

The numbers: ASX-listed Collins Foods, the owner of a large portfolio of KFC and Taco Bell stores, announced revenue from continuing operations climbed 14.3% to $696.5 million in the half year ended 15 October. Underlying earnings from continuing operations rose 16.7% to $109.9 million in the same period, with an interim net profit of $50.5 million. The company also declared an interim dividend of 12.5c per share, payable on 28 December. The announcement saw shares jump 7.8% to $10.89 in opening trade.

The context: Collins Foods managing director and CEO Drew O’Malley said the performance in the first half highlighted the underlying strength of the business, and the resilience of the fast-food sector in challenging economic conditions, with cost-of-living pressures impacting consumers.