Collins Foods’ Shares Zoom Up – Fast Food Group Announces Roll Out Of More Taco Bell Restaurants

  • Oct 04, 2018 AEST
  • Team Kalkine
Collins Foods’ Shares Zoom Up – Fast Food Group Announces Roll Out Of More Taco Bell Restaurants

On 4 October 2018, Collins Foods Limited (ASX: CKF) announced that the company has entered into a Development Agreement with Taco Bell (a subsidiary of Yum! Brands Inc.) that will govern the roll-out of more than 50 new Taco Bell restaurants across different states in Australia over next three years. Following this news, the share price of the company increased by 5.237 percent as on 4 October 2018 (AEST 2:10 PM).

The Development Agreement will be covering three states of Australia including Queensland. It specifies an annual new build restaurant number and provides Collins Foods with the right of first offer in relation to the establishment of new Taco Bell restaurants across the relevant states. The internally generated funds will be used to fund the roll-out.

Collins Foods started its first Taco Bell in Annerley, Brisbane in the year 2017 and it has performed very well which has prompted the company to expand their business. The company is planning to open three more restaurants in Robina, North Lakes and Cleveland by the end of calendar year 2018.  

The company also released its investor presentation on 4 October 2018 in which the company informed that it has delivered consistent and significant growth over the past 5 years. In the last five years, the revenue of the company increased by 12.7% and the operating cash flow of the company increased by 80% in five years. In five years, the dividend payment is up by 125 percent. In the last five years, the company has acquired 83 restaurants and built 31 new restaurants. It is expected that the company will build further 8 to 9 restaurants each year for next five years. The KFC Australia has also delivered consistently strong revenue and EBITDA growth. Revenue of KFC Australia has increased by 96% in the past 5 years and the EBITDA has increased by 122% in five years.

CKF’s shares traded at $6.43 with a market capitalization of $711.89 million as on 4 October 2018 (AEST 2:10 PM). The stock has been up 17% in last six months and is trying to reach new highs.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK