Collins Foods has reported a $29.1m full-year profit after fielding a loss of $10.4m last year.
The business, which is both a franchisee and franchisor, operates 179 KFC outlets, and owns both the Sizzler chain and Snag Stand.
While the Sizzler chain has declined in Australia there is a growing focus on increasing the franchised presence in Asia; there are 65 outlets across China, Japan and Thailand and plans to add more in China and Thailand next year.
There are 22 Sizzler outlets in Australia and CEO Graham Maxwell said the company will watch the “remaining restaurants closely” and take the necessary action, according to news.com.au.
Last year Sizzler was categorised as a non-core business for Collins Foods. Instead the company is concentrating on KFC growth.
In a statement to the ASX on Tuesday Maxwell said “Strong sales across our KFC restaurants were driven by excellent core product offerings combined with new product innovations and good value offers.
“We continue with our strategy of expanding our KFC network in regions with low market penetration whilst ensuring that we maintain the appropriate level of investment in our existing portfolio to keep these restaurants contemporary and provide our customers with a positive experience.”
In 2017 there will be further expansion.
“We will maintain our investment in the KFC business with plans for up to eight new restaurant builds in addition to 14 major remodels,” said Maxwell.
The Collins Foods group also plans to extend its Snag Stand chain – it has five company owned and one franchised store in Australia.
