Quick-service restaurant operator Collins Foods reported record sales and profit for the last fiscal year, driven by the strong performance of its KFC business in both Australia and Europe.
Revenue for the year ended May 3 rose 8.6 per cent to nearly $1.6 billion, while statutory net profit after tax surged 280 per cent to $47.1 million.
“We delivered strong performance against all these priorities despite an uncertain macro and geopolitical environment,” said CEO Xavier Simonet. “The record results are a credit to the effort, creativity and passion of our restaurant and support centre teams.”
KFC Australia saw revenue increase 7.6 per cent and same-store sales improve 2.7 per cent.
Management attributed the growth to long-term brand and customer strategies, which focus on modern campaigns, menu innovation, and initiatives to deliver everyday value.
The company invested further in its restaurant network during the year, opening eight new locations, closing one, and ending the period with 295 stores nationwide.
“During FY27 and into FY28, we will roll out KFC’s global beverage platform, Kwench by KFC, nationally. We will extend late-night opening hours of our restaurants to adapt to consumers’ changing eating habits, and later this year we will partner with KFC South Pacific and trial a new breakfast offering in select restaurants,” said Simonet.
KFC Europe, which comprises operations in Germany and the Netherlands, saw revenue grow 12.5 per cent, with same-store sales up 0.8 per cent. The company ended the year with a footprint of 80 restaurants in the region.
Taco Bell revenue slid 10 per cent. In March, Collins Foods announced its planned exit from the brand, with ownership of 20 restaurants to be transferred to a joint venture between a subsidiary of Yum Brands and Restaurant Brands Australia.
The transaction is expected to close in July-August. The company said the exit will allow it to focus more on the KFC brands and the most profitable opportunities.
During the year, the company announced the settlement of class action proceedings regarding 10-minute rest breaks, which remains subject to court approval. It also made progress in remediating impacted team members as part of a voluntary wage remediation program.
In the first eight weeks of FY27, Collins Foods’ KFC total sales grew 6.7 per cent in Australia, with same-store sales up 4 per cent.
