Collins Foods (ASX: CKF) – Collins Foods 2026 AGM Presentation

Collins Foods delivered record FY26 results, with continuing operations revenue rising 8.6% to $1,592.6 million and underlying profit after tax climbing 13.0% to $61.4 million. The company maintained its record dividend of 28.0 cents per share, signaling management confidence in sustained earnings. The statutory profit of $47.1 million represents a 280.5% increase, though this includes Taco Bell exit costs that will largely clear by the half-year result, providing investors a cleaner view of normalized earnings power.

In Australia, which remains the earnings engine, Collins improved performance through operational discipline and innovation. A Kwench by KFC trial is progressing toward national rollout, offering a non-traditional format to capture new occasions and dayparts. The Supercharge remodeling program, involving major renovations typically including dual-lane drive-throughs and optimized kitchen designs, is lifting capacity across the estate. These initiatives address both top-line growth and productivity, a key advantage for a mature operator seeking to accelerate like-for-like sales.

Internationally, Collins has sharpened its focus on higher-return opportunities. In Germany, the company signed new development agreements and acquired 8 restaurants in Munich, building a meaningful pipeline in a high-growth market. The Netherlands operation also showed progress after restructuring its Corporate Franchise Agreement to improve long-term economics and operational control. These moves demonstrate disciplined capital deployment while pursuing selective international expansion.

The Taco Bell exit has now concluded, with 20 restaurants transitioned to new ownership and 7 closed. This simplification removes a strategic distraction and allows management to concentrate capital on stronger-performing KFC and Pizza Hut banners. The exit costs have largely flowed through the financial statements and will be reflected in the half-year accounts, giving investors a cleaner baseline for assessing forward earnings.

Collins has also advanced its sustainability agenda with measurable progress across multiple fronts. The company diverted 22.3% of waste from landfill, achieved 100% upcycling of cooking oil, and reduced food waste to 1.91% of operations. Safety programs drove a 26.9% improvement in the total recordable injury frequency rate, while female leaders in management reached 46.2%, up from 43.0%. These metrics address growing investor concerns around environmental and social governance.

Collins’ stated growth priorities center on Australia through product innovation, day part expansion, and brand investment. Internationally, execution of the Germany growth pipeline and Netherlands optimization will be critical. Investors should monitor Australian same-store sales trends, the Kwench trial unit economics, and Supercharge remodel pace. With Taco Bell cleared, Collins has a cleaner foundation for demonstrating earnings growth. 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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