Collins Foods Limited delivered record revenue of $1,592.6 million in FY26, representing 8.6% growth from the prior year despite persistent cost of living pressures affecting both Australian and European operations. The company’s record underlying profitability reflects disciplined operational execution and strategic new product launches across its portfolio, demonstrating the resilience of its restaurant networks in a challenging macroeconomic environment.
Underlying earnings tell a cleaner story than statutory figures, which were inflated by a 280.5% jump in reported net profit attributable to shareholders (NPAT) to $47.1 million. Stripping out one-off items including $7.5 million in impairment charges, wage compliance provisions, and class action settlements, underlying NPAT grew 13.0% to $61.4 million. This more sustainable earnings growth was supported by underlying EBITDA increasing 6.3% to $244.5 million and underlying EBIT climbing 10.1% to $130.7 million, driven by same store sales growth and improved productivity across the business.
The company’s financial position strengthened considerably, with after-tax operating cash flows of $150.1 million enabling both investment in restaurant networks and meaningful debt reduction. Net debt declined to $119.6 million from $137.9 million in FY25, while the net leverage ratio improved to 0.77 from 0.93, positioning Collins Foods with substantial headroom to pursue growth initiatives. Management signalled confidence through a higher fully franked dividend of 28.0 cents per share, up from 26.0 cents in FY25.
The results reflect progress across key strategic priorities, including the acquisition of eight restaurants in Munich alongside new development agreements with Yum! Brands, restructuring of the Netherlands franchise arrangement to improve profitability, and a negotiated exit from Taco Bell operations. KFC brand leadership remained strong through product innovation and expanded usage occasions, while the company successfully refined its portfolio to focus on higher-return operations. These moves position the business to generate superior returns from its core KFC platform.
Investors should monitor the successful integration of the Munich acquisition and the pace of restaurant network expansion under the new Yum! Brands development agreements, alongside ongoing profitability improvements in the Netherlands. The company’s disciplined capital management and debt reduction trajectory, combined with a strengthened balance sheet, provide flexibility to accelerate growth investments if market conditions permit. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Collins Foods Limited (ASX: CKF)
Collins Foods Limited is the largest KFC franchisee in Australia and operates both KFC and Taco Bell restaurants across multiple countries. The company operates approximately 275 franchised KFC restaurants and 27 Taco Bell locations in Australia, with additional KFC operations in Germany and the Netherlands. Its primary revenue is generated from the operation and management of these quick-service restaurant franchises.
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