Collins Foods’ net income surges sixfold

Collins Foods income surges
Its KFC Australia same-store sales grew 3.8 per cent. (Source: Collins Foods)

Collins Foods‘ earnings surged over sixfold in the last fiscal year on the back of positive same-store sales across all business segments.

The company’s statutory net profit soared 501.9 per cent to $76.7 million as revenue increased 10.4 per cent to $1.49 billion.

Its KFC Australia same-store sales grew 3.8 per cent while its KFC Europe’s same-store sales rose 4.9 per cent. Taco Bell’s same-store sales climbed 3.5 per cent.

“Growth was driven by our growing footprint with 17 net new restaurants added across the group, increased adoption of digital channels, new product innovation, and value-led initiatives,” said Kevin Perkins, interim CEO and MD at Collins Foods.

“Profitability also improved over the year, benefiting from sales growth, greater operational efficiency and cost control.”

The company anticipates margin pressure across the group for the current year amid expected significant cost-of-living and inflationary pressures.

Collins Foods is a franchisee that operates 279 of the approximately 750 KFC restaurants in Australia.

This article was first published on Inside Retail.