AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Collins Foods sees 24% share price jump on FY25 results
- Strong digital sales and new store growth boost KFC Australia
- European performance remains mixed amid macroeconomic challenges
Collins Foods Ltd (ASX:CKF), a member of the ASX300, witnessed a notable 24% surge in its share price following the release of its FY25 results. The fast-food operator, which runs KFC outlets in Australia, Germany, and the Netherlands, provided investors with a performance update that revealed encouraging signs of growth despite a mixed macroeconomic landscape.
Financial Summary: Resilience Through Headwinds
For the 12-month period ending 27 April 2025, Collins Foods reported a 2.1% rise in group revenue, reaching $1.52 billion. However, underlying EBITDA saw a slight dip to $228.5 million, and underlying EBIT declined 5.7% to $117.1 million. The company’s underlying net profit fell 14.8% to $51.1 million, while statutory net profit dropped significantly to $8.8 million. This was largely influenced by impairment charges related to the company’s European operations.
Despite the drop in earnings, a final dividend of $0.15 per share was declared, taking the full-year payout to $0.26, a decrease of 7% compared to the previous year.
KFC Australia: A Pillar of Stability
The standout performance came from KFC Australia, which reported a 3% revenue increase to $1.15 billion. Growth was attributed to the addition of new restaurants, increased digital ordering, and product innovation. Digital channels now account for over a third (34.2%) of total sales, reflecting a shift in consumer behaviour.
Notably, the company opened 10 new KFC restaurants and closed one during FY25. Plans for FY26 include launching 7–10 new locations, with an eye toward 28–30 new stores by 2028.
Underlying EBITDA in this segment inched up 0.5% to $222.6 million, but underlying EBIT declined 2.6% due to higher depreciation costs linked to restaurant network expansion.
European Markets: A Mixed Picture
In contrast, KFC Europe faced a tougher operating environment. Revenue declined by 0.4% to $312.3 million, impacted by cost-of-living pressures, geopolitical tensions, and brand perception issues. The company took a $35 million impairment on 16 underperforming stores in the Netherlands.
On the bright side, sales momentum improved in the second half of the year, particularly in Germany where same-store sales rose 3.3%. Digital adoption continues to accelerate, with digital sales accounting for 66.7% in Germany and 62.9% in the Netherlands.
Early FY26 indicators are positive. In the first eight weeks, KFC’s total sales grew 4.9% in Australia, 2.6% in the Netherlands, and 2.4% in Germany. The company is targeting low-to-mid teens growth in underlying net profit for the fiscal year.
As part of ongoing compliance efforts, Collins Foods increased its provision for wage entitlements to $7.9 million, as it continues to review historical pay data.
With strategic restaurant growth, a focus on digital transformation, and improving operational performance, Collins Foods (CKF) remains a key name to watch in the fast-food retail space on the ASX300.
